Naira to fall massively, as foreign airlines, agents to begin ticket sales in dollar

Naira to fall massively, as foreign airlines, agents to begin ticket sales in dollar

Foreign Airlines will from 19 April ask Nigerians looking to travel out of the country to buy their tickets in dollars.

The development is coming amid the worsening shortage of foreign exchange in the country.

Ripples Nigeria had earlier reported how multinational companies operating in Nigeria have been facing difficulties repatriating their dollar profits.

In fact, at the commissioning of the Murtala Muhammed International Airport (MMIA) new terminal, Minister of Aviation, Senator Hadi Sirika, had revealed that foreign airlines’ trapped fund in Nigeria was about N117 billion ($283million).
To checkmate the trapped funds on Wednesday the international airlines on APG Interline Electronic Ticketing Agreements GP code 275 announced plans to start issuing tickets in dollars, effective April 19, 2022.

“We are making this changes due to the difficulty in repatriating airlines’ funds stuck in Nigeria and other countries, coupled with foreign exchange fluctuations”, the group said.

In a travel advisory to its trade partners, titled, “APG IET: Restrictions of Sales in US Dollars”, APG said, “Dear travel partners, warm greetings from APG. This is to bring to your notice that with effect from April 19, 2022, GP would only accept issuing of tickets in US dollars and not naira.

“This is mainly due to repatriation issues and the forex situation in the country. This would most likely be a temporary measure till the forex situation improves. Our sincere apologies for any inconveniences this may cause to you and your business. Thank you for understanding”.

Notable carriers on the APG IET platforms include South African Airways, South African Airways, Fly Dubai, Kenya Airways, Middle East Airlines, Royal Air Maroc, Rwanda Air, Thai Airways, Turkish Airlines, French Bee, Egypt Air, ASKY, Air Seychelles, Air Algerie, and Air Namibia.

Read also: Naira appreciates against US dollar, Euro, British Pounds at official market

Others are Air Panama, Air Burkina, Avianca, Bangkok Airways, Cabo Verde Airlines, Fiji Airways, Hong Kong Airlines, and Malaysian Air amongst others.

Some of the carriers which fly directly into Nigeria are South Africa Airways, Turkish Airlines, Asky Airlines, Egypt Air, Royal Air Maroc, Middle East Airlines, Rwanda Air and Kenya Airways.

If the airlines follow forward with their intentions, the black market exchange rate of the dollar would finally cross N600, as desperate Nigerians travelling out of the country will have to source dollars from the black market.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now

Source: Culled From Ripples Nigeria.

Latest News