There is a noticeable uptick in the trend of Nigerian travelers opting to secure their international flight tickets from various African nations and even destinations beyond the African continent.
This development is occurring amid delays from the federal government in disbursing funds designated for the repatriation of earnings by foreign airlines.
In Nigeria, foreign airlines, for example, accept Naira from customers for ticket purchases and subsequently convert these funds into foreign currencies to facilitate their operational needs.
However, they have expressed frustration over their incapacity to carry out currency exchanges via the official foreign exchange market, citing the scarcity of foreign exchange resources.
As a consequence of this development, Emirates Airlines, the flagship carrier of the UAE, has already concluded its presence within the airspace of the country.
While speaking with journalists, Mr. Daisi Olotu, the Group Managing Director of Dees Travels and Tours Limited, pointed out that the aviation sector is facing a downturn, attributing it to the government’s delay in releasing funds for the repatriation of foreign airlines’ earnings.
He said: ‘This development is evident in the skyrocketing fares, and the airlines’ threat to reduce or outrightly cease operations in Nigeria.’
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‘It is as a result of these high fares, that Nigerians are purchasing their international tickets from other African countries and even non-African countries.’
‘The downstream sector, notably the travel agencies, and service and hospitality establishments bears the brunt of this issue and faces imminent closures as a result of the loss of businesses every day and if left unaddressed, this could result in a widespread economic fallout.’
‘The aviation sector is a crucial revenue generator for any country significantly contributing to its economic growth.’
‘The movement of persons to and from Nigeria aids in the expansion of local businesses, boosting tourism, and enhancing foreign direct investment.’
‘These result in the increase of government revenue through taxes, rates, and other avenues that improve our nation’s economic standing.’
He quoted a data publication from Statistica released in October 2021, stating that Nigeria has over 5,000 travel agencies.
‘Imagine the number of Nigerians who will be out of jobs as a result adding to the already overpopulated labor market.’
‘Additionally, the government stands to lose substantial revenue from taxes paid by these agencies adding to the economic crises the country is facing.’
‘It is against this backdrop that we appeal to the Nigerian government, to find ways to resolve this problem. The release of $61 million falls short of the $812 million trapped funds. Immediate action is crucial to prevent further deterioration of the aviation industry and its alarming effect on the country’s economy,’ he added.