Nigerians have been on a spending spree, shelling out a whopping $4.66 billion on foreign air travels within a space of 15 months.
Analysis of the Central Bank of Nigeria (CBN) data between the first quarter of 2022 and the first quarter of 2023 has revealed.
During this time frame, foreign airlines purchased foreign exchange from the Central Bank of Nigeria to facilitate the repatriation of their earnings back to their respective home countries.
The data shows a significant surge over time, with $496.44 million sold in Q1 2022, soaring to $1.03 billion in Q2 2022, reaching $1.36 billion in Q3 2022, followed by $887.17 million in Q4 2022, and finally culminating at $890.3 million in Q1 2023.
This remarkable 79 percent increase between Q1 2022 and Q1 2023 reflects the growing trend of Nigerians seeking international travel experiences.
However, despite the size of the revenue, foreign airlines have encountered a considerable roadblock in repatriating their hard-earned funds.
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In March, the International Air Transport Association (IATA) made an impassioned appeal to the Nigerian government to release trapped funds that have accumulated to a staggering $743.7 million as of January, compared to $662 million in December.
However, analysis shows that flying from Nigeria comes at a higher cost compared to other West African countries like Ghana and the Benin Republic.
The discrepancies in air ticket prices have been particularly noticeable for popular routes like Lagos to London, where passengers paid a staggering $3,295 for a one-way economy ticket, while their counterparts from Cotonou International Airport in Benin Republic paid a relatively lower $1,256 for the same journey.
Aviation experts have weighed in on the situation, emphasizing the need for Nigeria to establish at least three flag carriers to compete effectively with international airlines. By doing so, they believe that capital flight could be reduced, and the country could claim a more substantial share of passenger traffic.
As foreign airlines continue to grapple with the challenges of repatriation and airfares soar on Nigerian routes, it remains to be seen how the government will address these issues to sustain the momentum of international air travel while safeguarding the interests of both the airlines and the Nigerian travelers.