Market News

By : Olusegun Koiki

National Association of Nigerian Travel Agencies (NANTA) has criticised some foreign airlines operating in Nigeria for insisting on United States’ dollar-only ticket sales.

The association described the practice as disrespectful to Naira and harmful to the country’s economy.

Speaking with journalists in Lagos yesterday on the forthcoming 50th Annual General Meeting (AGM) of NANTA, slated for April in Ibadan, Oyo State, its President, Yinka Folami, said that such practise was against the development of Nigeria and a huge disregard for the nation’s currency.

The AGM with the theme: ‘Embracing our Diverse Cultural Heritage from the City of Firsts: Redefining our Role as Global Travel Ambassador’, Folami said that the Bilateral Air Service Agreements (BASA) and Open Skies Agreement Nigeria entered with countries may permit some of their foreign airlines to transact in foreign currency in the country, but insisted that completely excluding naira transaction in Nigeria was unacceptable.

Folami said the decision of dollar-only transactions in Nigeria amounted to economic distortion and directly undermined the government’s ongoing efforts to stabilise the naira and rebuild investor confidence.

Although Folami declined to name the affected airlines, searches by The Guardian indicated that three airlines – United Airlines, Delta Air Lines from the U.S., and Emirates Airlines from the United Arab Emirates (UAE) – may be among the carriers culpable.

Besides, Folami revealed that travel agencies in Nigeria had lost between 30 and 40 per cent of ticket sales due to the ongoing Middle East crisis, which had disrupted travel demand.

Also, a trustee of NANTA, Lagos Zone, Daisi Olotu, lamented alleged excessive taxation on travel agencies by government authorities.

Olotu argued that agencies were often taxed on total ticket sales turnover rather than their actual earnings or commissions.