‘CBN’s lack of monitoring emboldens foreign carriers to sell tickets in dollars’

• Nigerians divided over dollar tickets as Naira stabilises
• Cross-border trading, crime against economy-NANTA President

Foreign airlines have returned to their old ways as passengers are groaning over the insistence by some airlines to charge ticket fees in dollars rather than in the local currency, the naira.

It is the long-standing policy of the Central Bank of Nigeria (CBN) that the naira is the legal tender in Nigeria, making it illegal to refuse it for payments within the country.

The practice, recently reintroduced by some international airlines, has ignited outrage within the aviation sector.

Both industry practitioners and passengers have described the dollar-only ticket sales as an affront to Nigeria’s sovereignty and have called on the Federal Government to take urgent action.

The lack of a functional national carrier, not a few believe, has further left the country at the mercy of foreign airlines, leading to huge capital flight.

Sources told Aviation Metric that the apex financial regulator is ‘helpless’ in enforcing the law to compel foreign airlines to sell tickets in naira.

They noted that the apex bank’s reluctance to sanction the carriers may have emboldened them to continue the practice of selling tickets in dollars in Nigeria. A travel agent, who spoke to Aviation Metric under condition of anonymity, said the practices had persisted for a long time until the CBN planned to wield the big stick against airlines and some travel agents.

He, however, stated that some passengers preferred to pay in US currency, adding that many airlines accept both dollar and naira payment.

He equally stated that many of those buying their tickets online are made to pay in foreign currency, particularly in dollars, as the portals only accept dollar card payment.

The source also stated that the stability of the naira against the dollar has made it even easier for people to pay in dollars despite the CBN’s policy that the naira is legal tender in the country, stressing that it has now become a choice.

Another travel agent, who spoke to our correspondent, said foreign airlines are expected to abide by the nation’s rule that naira is the legal tender and not foreign currency.

National Association of Nigerian Travel Agencies (NANTA), Mr Yinka Afolami, described the practice as unhealthy for the country. He also described cross-border trading in foreign currency as “a crime against the economy.”

Cross-border trading happens when a foreign registered travel agent sells tickets emanating from Nigeria, and funds emanating from the transaction are domiciled in another country.

This mostly happens when a passenger books a round-trip (to and from Nigeria) ticket.

The foreign agent mostly conspires with some local agents to carry out this act.

Folami, who was obviously unhappy about the development, said the body of agents across Nigeria, NANTA, has secured the buy-in of the Federal Government to fight these unlawful traders.

The NANTA president declared cross-border trading a sin and disrespectful to Nigeria, threatening to delist any member found conniving with the foreign perpetrators.

He added that the government has also requested the list of agents engaging in such trades.

“Those of us in the aviation space understand that until we have a strong Nigerian carrier to stand in the gap, these issues will persist. I am happy to inform Nigerians that the government is squarely addressing the issue of ticket sales in foreign currency, and that is the latest update on the matter,” Folami said.

He explained that there is no need to sell tickets in foreign currency again in Nigeria, describing the practice as an outdated system that will fade out in Nigeria’s aviation industry soon.

Wole Shadare