Nigeria Air project stalls, airfares skyrocket over foreign exchange shortage, Nigerians have spent about $4.66bn on foreign air travels in 15 months, according to findings.
Data obtained from the Central Bank of Nigeria showed that the amount was sold to foreign airlines between the first quarter of 2022 and the first quarter of 2023.
Foreign airlines buy foreign exchange from the CBN to enable them to repatriate their ticket sale proceeds to their various home countries. About 25 foreign airlines currently operate into Nigeria
A breakdown of the CBN data showed that $496.44m was sold to foreign airlines in Q1 2022; $1.03bn in Q2 2022; $1.36bn in Q3 2022; $887.17m in Q4 2022; and $890.3m in Q1 2023. The figures indicate an increase of 79 per cent between Q1 2022 and Q1 2023.
The PUNCH observed that the highest amount was recorded in Q3 2022, with about $1.36bn.
Despite the amount sold to the carriers, foreign airlines have been struggling to repatriate their funds.
In March, the International Air Transport Association, the top global trade association of international airlines, appealed to the Nigerian government to allow international airlines to repatriate their funds trapped in the country.
IATA said airlines’ trapped funds in Nigeria rose to $743.7m in January from the $662m recorded last December.
“For over a year, Nigeria has been the country with the highest amount of airline-blocked funds in the world,” the IATA said.
Since the amount increased from $450m in May 2022, to $464m in July of the same year, the trapped funds have been linked to some of the higher fares on Nigerian routes.
Credit: punchng.com
