Travel Agencies Fault Dollar-Only Tickets by Foreign Airlines
The National Association of Nigerian Travel Agencies (NANTA) has strongly criticized certain foreign airlines operating in Nigeria for insisting on United States dollar-only ticket sales. The association described this practice as disrespectful to the Nigerian naira and harmful to the country's economic stability. Speaking with journalists in Lagos, NANTA President Yinka Folami emphasized that such actions undermine Nigeria's development and show a significant disregard for the national currency.
Economic Distortion and Disregard for Naira
Folami highlighted that while Bilateral Air Service Agreements (BASA) and Open Skies Agreements may permit foreign airlines to transact in foreign currencies in Nigeria, completely excluding naira transactions is unacceptable. He argued that this dollar-only policy amounts to economic distortion and directly undermines the government's ongoing efforts to stabilize the naira and rebuild investor confidence. The practice, according to Folami, is not only against Nigeria's interests but also a violation of fair trade principles in the aviation sector.
Affected Airlines and Industry Impact
Although Folami declined to name specific airlines, investigations by The Guardian suggest that three carriers—United Airlines and Delta Air Lines from the United States, and Emirates Airlines from the United Arab Emirates—may be among those implementing this policy. Additionally, Folami revealed that travel agencies in Nigeria have suffered significant losses, with ticket sales declining by 30 to 40 percent due to the ongoing Middle East crisis, which has disrupted travel demand and further strained the industry.
Excessive Taxation Concerns
In related developments, Daisi Olotu, a trustee of NANTA for the Lagos Zone, lamented alleged excessive taxation on travel agencies by government authorities. Olotu argued that agencies are often taxed based on total ticket sales turnover rather than their actual earnings or commissions, placing an unfair financial burden on businesses already struggling with reduced sales and currency issues. This combination of dollar-only policies and high taxes poses a dual challenge to the sustainability of Nigeria's travel sector.
The criticism comes ahead of NANTA's 50th Annual General Meeting, scheduled for April in Ibadan, Oyo State, with the theme 'Embracing our Diverse Cultural Heritage from the City of Firsts: Redefining our Role as Global Travel Ambassador.' The association continues to advocate for policies that support the naira and promote a balanced economic environment for all stakeholders in the travel industry.
