There are indications that sale of air tickets in dollars would reduce the backlog of trapped foreign airlines funds in Nigeria, as part of efforts to address the issue.
This development, according to aviation analysts, would put an end to trapped funds in the country and also address the fear of foreign airlines, reducing their frequencies in the country.
An aviation analyst, and flight despatcher, Simeon Uchendu, in an interaction with aviation correspondents, said foreign airlines contribute over 70 per cent of aviation earnings in the country.
He noted that due to the significant rise of their funds trapped in the country over the past one year, they are mulling massive reductions in their frequencies to Nigeria.
According to him, foreign airlines collect Naira for their tickets, and exchange the same for foreign currencies for their operations but they have been lamenting their inability to get the exchange executed through the official foreign exchange market due to the scarcity of foreign exchange resources.
From the revealed analysis on breakdown of the trapped funds as of December 2022, the fund stood at $549 million, and that this later rose to $662 million in January 2023 and is currently at $744 million, which is an increase of 11 per cent when compared to the previous month.
This development, he said, led to suspension of operations by foreign airlines, like the United Arab Emirates flag carrier, the Emirates Airline operating over 21 flights, which suspended its operation indefinitely in Nigeria in October 2022.
Also in a chat with the Director of Research, Kenrich Travels Limited, Mr. Francis Ihenacho, he stressed that the suspension of operations in Nigeria by Emirates Airlines has a spiral effect on the allied services in the country to the airline.
“Apart from the Maintenance Repair and Operate (MRO) firm, other allied organisations to Emirates like hotels, catering services, car hire, security, expatriates, fuelers and other backup companies would be affected by the decision of the airline to quit the Nigerian scene.
“The Federal Government should take a cue from the Zimbabwean government, which allowed the foreign airlines operating in its country to sell tickets in dollars.
“Rather than insisting on naira sales for the airlines, dollar sales would reduce the challenge of blocked funds currently being experienced by the foreign airlines.
“The Federal Government should also merge the black market rate with the official rate, this would reduce the challenge. By and large, we should find a way out of this crisis. Zimbabwe was also affected and it has told the airlines to sell tickets in dollars.
“Even, the fuel suppliers are feeling the pains. Now, the fuel suppliers that refused to collect naira from Emirates are now collecting zero naira and zero dollars.
“So, we are all feeling the pain. I think the Nigerian oil companies should have collected naira, rather than insisting in dollars from Emirates and today, everybody on that value chain that gained from the services of Emirates are all down without jobs”, he noted.

By: Corlins Walter