The depreciation of the naira against the United States dollar by 55 per cent at the official foreign exchange market has led to a commensurate depreciation in airfares on international routes in Nigeria.
Naira Plunges Almost 40%
Jerrymusa.com reports that on monday, the naira depreciated from over 900 to over 1,400 dollars due to a reassessment of the methodology used by the FMDQ Exchange, which maintains records of the official exchange rate of the country.
The review was initiated in response to allegations of misleading reporting by authorised foreign exchange traders made by the Central Bank of Nigeria.
However, foreign airlines operating in Nigeria changed the currency rate for pricing their tickets from roughly N900/dollar to N1,421/dollar within 24 hours after the official exchange rate rose.
Due to this event, foreign airfares on Nigerian flights increased by over 55%.
According to information received by our correspondent on Wednesday, the cost of tickets for popular routes such as Lagos-London-Lagos, Lagos-New York-Lagos, and Lagos-Johannesburg, Lagos, had increased significantly.
The National Association of Nigerians’ President, Susan Akporiaye, a travel agency, verified the significant increase and stated that the development will exacerbate the problems facing travel agencies.
“We’ve been struggling financially for a while, and things are just getting worse.
“People who travel do so for important business purposes, such as education or medical care, rather than for leisure. Leisure is no longer the focus.”
According to Akporiaye, “travellers were grudgingly giving up cash and, if given the option, would not pay anything at all.
“For example, the price of an airline ticket has increased from $1000 to N1.5 million. Travellers must endure the financial hardship that forces them to make budget cuts.
“According to her, the industry players understood their predicament, with some travellers turning to enticing and providing collateral in order to achieve their goals and make travels.
“Prices would surely drop, the president said, adding, “I am optimistic.” It’s a reflection of the nation’s economic circumstances rather than an airline issue.”