Foreign airlines in Nigeria face mounting pressure to release lower ticket inventories following the Central Bank of Nigeria’s (CBN) decision to clear substantial portions of their blocked funds. While commending the CBN for its actions, the National Association of Nigeria Travel Agencies (NANTA) insists that airlines reciprocate by making affordable fares available on their websites for accredited travel management consultants.
Amid the crisis of blocked funds, many airlines had restricted the issuance of low economy tickets, displaying only premium and business class options. Nigerian passengers, burdened by the high cost of international airfares, had resorted to travelling to neighbouring countries for cheaper flight connections.
NANTA, through its President, Mrs. Susan Akporiaye, expressed appreciation for the CBN’s payment of an additional $64.44 million to foreign airlines. However, she urged the International Air Transport Association (IATA) to influence foreign airline operators to release all lower inventories by Friday, February 2, 2024.
Akporiaye emphasized that failure to release inventories fully would be deemed “unexplainable, unreasonable, unjustifiable, and unsupportive actions of airlines in the Nigerian market.” She also highlighted NANTA’s concern about the increasing Return on Equity (ROE) and the impact of soaring ticket costs on its members’ businesses.
Three months ago, NANTA, in collaboration with IATA, engaged in advocacy to address exorbitant fares, and as a result, the CBN cleared outstanding trapped funds within a week. NANTA maintains that airlines have no further justification for restricting inventory in the Nigerian market with the rate of exchange at N1,421 and the backlogs cleared by the CBN.
Stakeholders express mixed feelings about the situation. The General Secretary of Aviation Roundtable, Mr. Olumide Ohunayo, supports NANTA’s demand, praising the government’s commitment to addressing past anomalies. However, Managing Partner at Avaero Capitals, Sindy Foster, suggests that NANTA advocate for prompt payment of trapped funds or consider compromise agreements to limit forex exposure, thereby ensuring a more balanced approach to the situation.
