Nigerian Travel Agencies Decry N1 Billion Yearly Loss to Foreign Airlines' Sanctions
Travel agencies in Nigeria are facing severe financial strain, with an estimated N1 billion lost annually to Airline Debit Memos (ADMs) imposed by foreign carriers, according to an investigation by The Guardian. The National Association of Nigerian Travel Agencies (NANTA) has accused these airlines of discriminatory practices and is threatening to report them to the Federal Competition and Consumer Protection Commission (FCCPC) for anti-competition behavior.
Escalating Financial Penalties and Business Closures
The investigation revealed that some travel agencies have been billed between N2 million and N200 million for ADMs in a single transaction by specific airlines, with others facing charges of $100,000 to $300,000 for similar offenses. ADMs are used by airlines to recover funds when they believe tickets or boardings were issued incorrectly or rules were violated. This practice has led to the closure of many travel agencies, as they cannot afford the penalties, while others struggle to remain operational under the heavy sanctions.
So far this year, no fewer than 20 travel agencies have received ADM billings from airlines, with most protesting the decisions. NANTA, which has over 6,000 registered members nationwide, highlighted that African carriers, particularly those from East Africa, are the most culpable in this practice.
Industry Challenges and Government Involvement
A letter addressed to the Minister of Aviation and Aerospace Development, Festus Keyamo, dated November 2025 and sighted by The Guardian, listed ADMs as a major challenge facing the travel sub-sector. NANTA has escalated the issue with the Ministry of Aviation and Aerospace Development and the Nigeria Civil Aviation Authority (NCAA) in the last quarter of 2025, but efforts to engage foreign airlines have so far been unsuccessful.
A source close to one of the agencies explained that NANTA has tried to negotiate with the airlines, suggesting they pay Global Distribution System (GDS) fees based on ticketed segments rather than reservations to reduce ADM bills. One GDS owner in Nigeria has agreed to this approach, which could significantly lower the financial burden on agencies.
NANTA's Response and Threats of Legal Action
Dr. Yinka Folami, President of NANTA, confirmed in an interview with The Guardian in Lagos that members lost over N1 billion to ADM billings in 2025. He expressed concern that the practice is crippling businesses and threatening jobs across the industry. Folami warned that if the airlines do not stop the arbitrary billings, NANTA will not hesitate to take the operators to the FCCPC for investigation, emphasizing the need for fair competition and consumer protection in the aviation sector.
