Concerns for Naira As Airline Offers Tickets in Dollars to Nigerians, Expert Gives Explanation

• Emirates Airlines is set to resume operation in Nigeria after over two years it suspended services in the country
• The airline comeback is set for October 1, and it comes with a surprise that Nigerians will pay in dollars for flight tickets
• Emirates airline tickets can be booked through its official website or local travel agents for passengers in the country

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The United Arab Emirates (UAE) carrier, Emirates Airlines, is set to resume operation starting Tuesday, October 1, 2024, and has open ticket booking on Nigerian routes in dollars.

The airline said the service will be operated using a Boeing 777-300ER. EK783 will operate between Dubai and Lagos.

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The Emirates Boeing 777-300ER serving Lagos will operate with eight first-class suites, 42 Business Class seats, and 304 seats in Economy Class.

The service will be operated using a Boeing 777-300ER. EK783 will depart Dubai at 0945hrs, arriving in Lagos at 1520hrs; the return flight EK784 will leave Lagos at 1730hrs and arrive in Dubai at 0510hrs the next day.

Tickets priced in dollars

BusinessDay reports that all fare inventories on the Emirates website are priced in dollars ahead of the resumption.

The decision has sparked concern within the Nigerian travel industry. Industry stakeholders worry that pricing tickets in dollars could put additional pressure on the Nigerian naira, particularly in the black market, where travellers might need to purchase dollars at elevated rates to cover their travel expenses.

Olumide Ohunayo, industry analyst and Director of Research at Zenith Travels, explained that Emirates Airlines may have introduced dollar pricing as it needs time to configure fares into naira ahead of flight resumption.

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Emirates had previously suspended flights on Nigerian routes due to trapped funds and fuel suppliers insisting on payment in dollars. The CBN has since cleared the debts.

CBN clears debts owned airlines

Legit.ng reported that the Central Bank of Nigeria (CBN) had concluded paying all verified FX claims by foreign airlines with an additional $64.44 million payment to the affected airlines.

CBN’s Spokesperson, Hakama Sidi-Ali, disclosed this in a statement on Tuesday, January 30, 2024.

She said the new amount brought the total verified sum paid to the airlines to $136.73 million, saying all verified airline claims have now been cleared.

Source: Legit.ng