The numbers of Nigerian travellers purchasing their international tickets from other African countries and even non-African countries seems to be on the rise.
This is coming against the backdrop delay by the federal government in releasing funds for the repatriation of the earnings of foreign airlines.
For instance, in Nigeria, foreign airlines collect Naira for their tickets to customers 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.
The development has already seen the UAE’s flag carrier, Emirates Airlines exited the country’s airspace.
However, in a chat with Saturday Vanguard, the Group Managing Director, Dees Travels and Tours Limited, Mr. Daisi Olotu, stated that the delay by the government in releasing funds for the repatriation of the earnings of foreign airlines is causing a degeneration in the aviation sector.
He said: “This development is evident in the skyrocketing fares, and the airlines’ threat to reduce or outrightly cease operations in Nigeria.
“It is as a result of these high fares, that Nigerians are purchasing their international tickets from other African countries and even non-African countries.
“The downstream sector, notably the travel agencies, and service and hospitality establishments bears the brunt of this issue and faces imminent closures as a result of the loss of businesses every day and if left unaddressed, this could result in a widespread economic fallout.
“The aviation sector is a crucial revenue generator for any country significantly contributing to its economic growth.
“The movement of persons to and from Nigeria aids in the expansion of local businesses, boosting tourism, and enhancing foreign direct investment.
“These result in the increase of government revenue through taxes, rates, and other avenues that improve our nation’s economic standing.”
He quoted a data publication from Statistica released in October 2021, stating that Nigeria has over 5,000 travel agencies.
“Imagine the number of Nigerians who will be out of jobs as a result adding to the already overpopulated labor market.
“Additionally, the government stands to lose substantial revenue from taxes paid by these agencies adding to the economic crises the country is facing.
“It is against this backdrop that we appeal to the Nigerian government, to find ways to resolve this problem. The release of $61 million falls short of the $812 million trapped funds. Immediate action is crucial to prevent further deterioration of the aviation industry and its alarming effect on the country’s economy,” he added.
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