Stop selling tickets in dollars, NCAA warns airlines
The Nigerian Civil Aviation Authority (NCAA) has warned airlines, particularly foreign airlines to desist from selling tickets in United States dollars.
The aviation regulatory body said the action is a flagrant contravention of Central Bank of Nigeria’s (CBN) prerequisite guiding cost of products or services in Nigeria.
According to the Central Bank of Nigeria (CBN) circular issued on April 17, 2015, it directs that “Pricing of any product shall continue to be in Naira only and it is illegal to price or denominate the cost of any product or service (visible or invisible) in any foreign currency.”
A statement by the spokesman for the agency, Sam Adurogboye stated that the NCAA was disturbed by reports that some foreign airlines are declining to accept Nigeria’s local currency – the Naira as payment for tickets.
According to him, “In other words, some foreign airlines have blatantly resorted to selling tickets only in foreign currency. This act is considered insensitive to passengers who have elected on their own volition to choose the airlines for their travel.”
He noted that this is also contrary to the provisions of the Bilateral Air Services Agreement (BASA) between Nigeria and other countries as contained in Article 8 (4).
As a consequence of this action, Adurogboye disclosed that the regulatory authority has written warning letters to such erring airlines to immediately comply with the provisions of BASA and CBN directive, adding that sales of tickets and services should henceforth be offered to air travellers in Naira without further delay.
He further disclosed that the Federal Government has taken measures to ameliorate the subsisting foreign exchange issues.
It would be recalled that foreign airlines had in April this year began a regime of quoting and receiving payment for tickets only in the United States dollars. The situation was as a result of their inability to repatriate funds out of the country due to scarcity of the US currency.
Many travel agents were shocked with the discoveries as passengers, who usually patronise them for their travel needs had to cancel their reservations because of their lack of access to foreign exchange.
The situation was counterproductive for the sector as it affected good all across the value chain. It also gave bad image to the country.
Chairman, Airline Operators of Nigeria (AON), Capt Noggie Meggison described the situation as unhealthy development driven by the bitting dollars which elevated black market rates, leaving foreign airlines facing losses on their routes and struggling to acquire exchange for routine and scheduled maintenance.
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Transportation charges ( tickets, navigation, user charges, etc ) are generally denominated in dollars. Form of payment is the payers choice.
It is not illegal to pay in dollars, it is however illegal to refuse or reject payment in Naira.
This is a matter of convenience between the payer and the payee.
We at ART immediately got audience with the Ncaa and Nanta and confirmed the above position..
Earnings in dollar is even good for CBN as it is added money supply outside petroleum product thus reducing pressure on the naira exchange rate.
Hotels and other ancillary services in the industry are also dollar earners. The caution here is Naira as the legal tender must not be rejected by any trader.