Foreign airlines operating in Nigeria are set to shift to ticket sales in dollars, marking the end of the fluctuating experience of naira transactions. Reliable sources indicate that the airlines have decided to adopt dollar ticket sales to address the backlog of their funds trapped in Nigeria. It has been confirmed that Nigerian authorities have agreed to this arrangement as a mutually beneficial strategy to appease foreign airlines that have threatened to exit Nigeria’s airspace due to the $792 million in trapped funds.
Qatar Airlines has reportedly initiated the implementation of dollar ticket sales, and other foreign airlines are expected to follow suit as operations fully resume in the new year. Turkish Airlines, Emirates Airlines, British Airways, and several other foreign carriers had previously warned of their potential withdrawal from Nigeria unless the funds trapped in the country were released promptly.
During a media briefing on December 8, the International Air Transport Association (IATA) expressed concern about the total amount owed by countries in Africa and the Middle East, with over 70 percent of Africa’s total debt attributed to Nigeria. Kamil Alawadhi, Regional Vice President, Africa and Middle East, emphasized that “Nigeria alone accounts for almost half of blocked or trapped funds valued at US$2.57 billion.” Nigeria’s debt or trapped funds owed to these foreign airlines amount to $792 million, just $66 million shy of the total trapped funds owed by Egypt ($348 million) and Algeria ($199 million).
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