For several months now international airlines cannot recover revenue from international ticket sales in Nigeria. The country, which is facing major financial difficulties, is confronted with a shortage of foreign currency. The country is thus blocking the conversion of the local currency, the Naira. It is also blocking the repatriation of revenues from airlines operating in the country. The International Air Transport Association IATA estimates that blocked revenue funds amount to more than 790 million.
IATA has stated that these blocked funds in Nigeria have become a major problem for foreign airlines. Last November, IATA Vice President for Africa and the Middle East Kamil Al-Awhadi reported that he had been trying to find a solution for two years. And that with this blockage, Nigeria's debt to foreign airlines serving the country is expected to reach billion by 2024.
According to IATA, Nigeria is the country with the highest level of blocked airline funds. Next come Egypt ($348 million) and Algeria ($199 million).
British Airways, Ethiopian Airlines on the way out?
The Nigerian President has certainly summoned the Central Bank of Nigeria to hold quarterly meetings with the airlines to unblock the situation. But nothing really seems to be happening.
IAd therefore recommends that airlines stop serving the country in the near future. British Airways and Ethiopian Airlines are said to be considering this option. Emirates was the first in 2022 to suspend its flights. And despite an opportunity offered by the Central Bank to repatriate its funds, the Dubai-based company is refusing to resume its services.
In the meantime, to compensate for the lack of cash, most airlines have significantly increased their fares from Nigeria. A return ticket between Nigeria and Europe costs an average of more than €2,500 in economy class..
However, flights from Europe are still more affordable. As a result, a return ticket with Air France departing on 22 January and returning on 29 January in standard economy class costs from €1,137 (as of 29/12). An exodus of airlines would inevitably lead to a surge in fares...
