“CBN should not exclude aviation in RDAS”-Shettima

Alhaji Kashim Shettima Chairman/CEO Skyjet Aviation

The Chairman and CEO of the Skyjet Aviation Services Limited, Alhaji Kashim Bukar Shettima has objected to the decision of the Central Bank of Nigeria, CBN with the exclusion of the aviation sector from the Retail Dutch Auction System, RDAS. According to Shettima, “I think the Central Bank need to review this new policy  because aviation is dollar base. There is nothing about aviation we manufacture here in Nigeria, we do not make airplanes. We do not even make aircraft tyres here. Our insurance underwriters are 70 per cent foreign. If you have any problem, you will need to fly abroad. No facility can do C or D checks here. You have to go abroad. We cannot even repair corrosion here. If you do not do those little maintenance, there will be problems eventually that will affect people and business. We cannot get our money from CBN, we have to go to interbank which is like black market. It is a big problem for us and government need to look at this issue. Therefore, CBN should not exclude aviation in RDAS. ”

 According to a circular pasted on the CBN website   titled: EXCLUSION OF SOME TRANSACTIONS FROM RDAS WINDOW dated November 6, 2014 with reference number TED/FEM/FPC/GEN/01/022 addressed to all authorized dealers and the general public reads, “This is to inform all Authorised Dealers and the General Public that in order to maintain the existing stability in the Foreign Exchange market and to further strengthen the various policy measures already initiated by the Central Bank of Nigeria, the importation of the following items shall henceforth be funded from the interbank foreign exchange market only: Electronics, finished products, information technology, generators, information equipment and invisible transactions.

From information gathered, the aviation falls under the Invisible Transactions probably maintenance and insurance.

Another operator said if care is not taking this policy could force them out of business because operators will be getting their dollars through black market (Interbank) not through CBN any longer.