The foreign airlines collect Naira for their tickets to customers and exchange same for foreign currencies for their operations. But recently they said they have been unable to do so through the official foreign exchange market due to scarcity of foreign exchange in Nigeria.
Following the development, the Federal Government promised to release about $265 million of the over $456 million trapped funds to the airlines penultimate week. The move was acknowledged by the IATA, hailing the country for taking strategic measures to end the problem.
However, findings by Saturday Vanguard showed that the airlines have only received 25 percent ($133 million) of the amount promised.
Further findings showed that the 25 percent was released to few of the airlines, while some others were yet to receive any fund.
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The development has forced most airlines operating in the country to stop receiving payment for air tickets in naira, which contravenes the Nigerian Civil Aviation Authority, NCAA, directives.
To beat the law, the airlines simply direct passengers, travel agents to their portal where payments are done in dollars or pounds. They don’t openly reject Naira but make it impossible for people to buy tickets with Naira.
However, the foreign airlines have noted that their inability to source foreign exchange to repatriate their money has made them to lose confidence in operating in the country although Nigeria remains most lucrative route for many of them.
It would be recalled that the Federal Government, through the Central Bank of Nigeria, released about 265 million dollars to service these trapped funds. The move was acknowledged by the International Air Transport Association, IATA hailing the country for taking strategic measures to end the problem.
Sadly, that gesture has not brought a breather to the industry. Ticket fares are so high that economy tickets to USA range between N1. 5m to N2m or above. The exploitative tendencies of the foreign airlines have had a toll on passengers. Qatar Airways and their Moroccan counterparts are among the few still accepting Naira.
NCAA to deal with airlines breaching laws
The Minister for Aviation, Hadi Sirika has said that the NCAA, had been directed to deal with any airlines willfully breaching the country’s laws in order to protect the interest of Nigerians against reported airlines’ operational malpractices, warning that no violator, no matter how highly placed, would be spared if caught.
He said: “I want to use this opportunity to say that reports are reaching us that some of the airlines are refusing to sell tickets in naira. That is a violation of our local laws, they will not be allowed. The high and the mighty among them will be sanctioned, if they’re caught doing that.
“NCAA had been directed to swing into action and once we find any airline violating this, we will definitely deal with them. Also, they blocked the travel agents from access. They also made only the expensive tickets available and so on so forth.
“Our regulators are not sleeping; we have a very vibrant Nigerian Civil Aviation Authority. Once they find any airline guilty, that airline will be dealt with because we need to protect our people. It is according to our agreements, to what we have signed and this is according to international convention.”
