NANTA: Trapped fund resolution will stabilise fare pricing in Nigeria, lauds Tinubu, CBN

The National Association of Nigeria Travel Agencies (NANTA) said the decision by the Central Bank of Nigeria (CBN) and indeed that of the Federal Government to release foreign airlines’ trapped funds has helped to remove stains on the image of Nigeria, just as it praised the government and other relevant agencies for the speedy resolution of the matter.

President of NANTA, Yinka Folami who disclosed on Thursday in Lagos said his association whose members and the Nigerian travelling public bore the major brunt of the impact of the trapped funds, is impressed with the collective strategic intervention of the Federal Government through the CBN, Minister of Aviation and Aerospace Development,  the Nigerian Civil Aviation Authority (NCAA) and Federal Competition and Consumer Protection Commission ( FCCPC), noting that their synergy and collaboration contributed to the current stability in the travel trade market in Nigeria.

He urged that the fair play rule by Mr. Festus Keyamo and the collaborative Inter-Agency Committee on Review of Airfares and Good Practices (NCAA, FCCPC, and NANTA) should continue for continuous monitoring and stability.

The International Air Transport Association (IATA) at its meeting in Dubai a few days ago also thumbed up the commitment of Nigeria to fully settle the issue of trapped funds of its members, noting that the outstanding $19 million which represents less than two per cent of the entire $850 million is being sorted out.

Afolami noted that the laudable action that led to the settlement of the trapped fund saga would help further stabilise fare pricing in Nigeria.

“We sincerely urge the CBN to help clear the balance of $19 million owed the foreign airlines. We also expect the foreign airlines to reciprocate by being further receptive in lowering fares and working collaboratively to stop the migration of Nigerian travel trade opportunities to cross border trading.”

Proposing a stronger and more enduring environment for stable growth of the market, the NANTA President urged IATA to be more sensitive to the issues of point of sales and the worrisome shrinking Nigerian market, driven by the pattern of application of ROE by IATA which, perhaps unintentionally, he says drives speculation, encouraging parallel market purchases and pressures on Naira.

“We believe and trust that IATA can be more circumspect and supportive to check these trends and also show commitment to supporting our government and our businesses as they have done elsewhere.

NANTA President, Yinka Afolami

“This government has lived up to its promises and deserves support from foreign partners to ensure that our people and businesses are treated with the same measure of respect and commitment to shared objectives”, he stated.

Wole Shadare