Recent news reports have claimed that foreign airlines in Nigeria are shutting down their operations due to trapped funds. However, new information suggests that these claims are not entirely accurate.
Many airlines have since repatriated their funds from Nigeria, and some have found ways to circumvent the process that stipulates they sell their tickets in Naira.
Despite the high ticket prices in Nigeria, industry experts suggest that foreign airlines are making unprecedented profits from the Nigerian route. Nigerians pay the highest fares for international travel in the African continent, and the demand for air travel remains high. More Nigerians travel than Ghanaians, so tickets are in higher demand in Nigeria.
It’s important to note that while some foreign airlines may be experiencing difficulties, this is not a widespread problem. According to the Group Managing Director and CEO of Finchglow Holdings Limited, foreign airlines cannot stop operating in Nigeria because they are making too much money from the Nigerian route.
There have been suggestions that foreign airlines should be allowed to pay for their services in local currency to aviation agencies, handling companies, and fuel marketers. If this were to happen, the dollar rate would likely never go down.
It’s also worth noting that foreign airlines operating in Nigeria currently have access to three rates: the parallel market, the CBN, and the IEA window. They get these new rates in conjunction with the CBN.
Therefore, claims that foreign airlines are shutting down their operations in Nigeria are not entirely accurate. Many of these airlines have since repatriated their funds, and some have found ways to circumvent the process that stipulates they sell their tickets in Naira.
While there may be some difficulties, foreign airlines cannot stop operating in Nigeria due to the unprecedented profits they are making from the Nigerian route.