The Senate, on Wednesday, urged the Central Bank of Nigeria (CBN) to release 717, 478, 606 dollars airlines funds trapped in the country.
The upper chamber also called on the CBN to allocate 25 million dollars to airlines operating in Nigeria at its forth-nightly dollar auction.
These resolutions were reached sequel to the consideration of a motion titled: “Current Issues on airlines blocked funds in Nigeria” sponsored by Sen. Biodun Olujimi (PDP-Ekiti) on Wednesday at plenary.
Olujimi chairs the Senate Committee on Aviation.
Vice Chairman of the Committee, Sen. Bala Na’Allah (APC-Kebbi ) presented the motion on behalf of Olujimi.
The upper chamber also called on the Federal Government to urgently reverse the current trend of increasing airlines blocked funds in Nigeria.
It called on President Muhammadu Buhari to direct the CBN Governor,Mr Godwin Emefiele to pay up the blocked funds to the affected airlines.
The upper chamber further appealed to the airlines operating in the country not to withdraw their services while efforts were on-going to resolve the issue.
Moving the motion, Na’Allah said that since Jan. 2021, Nigeria had been the most challenged country in the world for the airlines to repatriate their funds to support their operation.
In Feb. Nigeria alone accounted for 44 per cent of total airlines blocked funds in the entire world.
The total airlines blocked funds in Nigeria as at March amounted to 717,478,606, dollars comprising matured bids that the CBN was yet to deliver, bids yet to mature and cash balances in airlines’ accounts for repatriation.
The matured bids not delivered by CBN amounted to 186.5 million dollars accounting for 26 per cent of total blocked funds while three stakeholders (IATA, Qatar Airways, and Ethiopian Airlines) accounted for 57 per cent of total blocked funds.
A review of airlines’ blocked funds in Nigeria in the last six months shows an average month-on-month increase of 49.3million dollars.
The consequences of these blocked funds are: Cheap tickets are not available in Nigeria because taxes and inflation will have eroded the profit when the funds are kept for a very long time.
This makes tickets very expensive and limited because neighbouring countries get the cheap tickets because of prompt payments due to prompt repatriation of funds.
Senators in their contributions supported the motion and voted to approve the prayers when they were put to voice vote by Senate President Ahmed Lawan
.as Buhari writes Reps for additional $800m loan
However, President Muhammadu Buhari has sought the approval of the House of Representatives for an additional $800 million loan for the National Social Safety Net Programme (NASSP) from the World Bank.
Speaker Femi Gbajabiamila read the letter written by the president at plenary on Wednesday.
The letter was titled “Request for approval for additional financing of the National Social Safety Net Programme (Scale-Up) by the National Assembly”.
The letter reads: “It is with pleasure that I forward the above subject to you. Please note that the Federal Executive Council (FEC) approved an additional loan facility to the tune of USD800 million to be secured from the World Bank, for the National Social Safety Net Programme (NASSP) and the need to request for your consideration and approval to ensure early implementation (Copy of FEC Extract attached).
“The House may wish to note that the Programme is intended to expand coverage of shock responsive Safety Net support among the poor and vulnerable Nigerians. This will assist them in coping with the costs of meeting basic needs.
“You may wish to note that, the Federal Government of Nigeria under the conditional cash transfer window of the programme will transfer the sum of N5,000 per month to 10.2 million, poor and low-income households for a period of six month with a multiplier effect on about 60 million individuals. In order to guarantee the credibility of the process, digital transfers will be made directly to beneficiaries’ accounts and mobile wallets.
“The NASSP being a social intervention programme will stimulate activities in the informal sector, improve nutrition, health, education and human capital development of beneficiary households.
“Given the above, I wish to invite the House to kindly approve an additional loan facility to the tune of USD800 million to be secured from the World Bank, for the National Social Safety Net Programme (NASSP).
“While hoping that this submission will receive expeditious consideration by the House. Please accept, Rt. Honourable Speaker, the assurances of my highest regards.”
The President also transmitted the Federal Fire and Rescue Service (Establishment) Bill 2022 to the House.
It reads: “Pursuant to Section 58(2) of 1999 Constitution of the Federal Republic of Nigeria (as amended), I forward herewith, the Federal Fire and Rescue Service (Establishment) Bill, 2022 for the consideration of the House of Representatives.
“The Federal Fire and Rescue Service (Establishment) Bill, 2022 aims to establish and provide legal and institutional framework for the Fire and Rescue Service.
“While hoping that the Bill will be considered for passage in the usual expeditious manner, please accept, Right Honourable Speaker, the assurances of my highest regards.”
The Speaker referred the letters to the relevant committees.
The House adjourned sitting indefinitely after taking the letters from the President.
