Following the Central Bank of Nigeria’s (CBN) announcement that it has cleared all foreign airlines verified foreign exchange backlogs, travel agencies operating under the auspices of the National Association of Nigeria Travel Agencies (NANTA) have called on airline operators in Nigeria to lower the prices of flight tickets.
NANTA declared its stance on Wednesday, cautioning these airlines—especially the international airlines—to promptly modify the cost of their aircraft tickets or risk severe penalties if they don’t.
The pressure group hailed CBN’s strategic involvement, highlighting its collaboration with the International Air Traffic Agencies (IATA) to free up funds stuck in the air, totaling more than $700 million—the largest amount among the 130 IATA member nations.
According to IATA and a number of international airlines, Nigeria, which has some of the most costly outbound flight ticket rates, made its choice mostly due to the trapped funds.
NANTA had previously justified the high cost of airline tickets due to the stranded cash scenario, but now that the CBN has kept its word, it is imperative that the exorbitant prices be quickly adjusted.
“NANTA, therefore, holds a firm position that airlines have no further reason and justification to restrict inventory in the Nigerian market,” the statement reads. “ROE at NGN 1421 and backlogs cleared by CBN.” Further limitations on reduced inventory, in the opinion of NANTA, would be disproportionate, avaricious, and inimical to the Nigerian government and market given the current state of the economy.”
“NANTA has requested that IATA force all airlines that serve the Nigerian market to release all reduced inventories by Friday, February 2, 2024, at the latest. reminding IATA that when IATA made the request, NANTA was helpful and cooperative.”
“Now, NANTA believes there is more going on with the behavior of airlines in our market, as anything less than the complete release of inventory by all airlines is inexplicable.”
“The National President made it clear to IATA that NANTA would address a World Press Conference next week on the unexplainable, unreasonable, unjustifiable, and unsupportive actions of airlines in Nigeria if full inventories are not released by all airlines by Friday, February 2, 2024.”
IATA acknowledged that “it was consulting with our airline members to verify the release of their revenues, noting that about $700 million remains trapped in the country,” but it also applauded CBN’s news that it had released an extra $64.44 million in blocked airline cash.”