As a move to address the foreign airlines' trapped funds in the country, indications have emerged that sale of air tickets in dollars would reduce the backlog.
The development according to aviation analysts would also put an end to trapped funds in the country and address the fear of foreign airlines reducing their frequencies in the country.
Vanguard Aviation World gathered that foreign airlines contribute over 70 per cent of aviation earnings in the country.
It was also gathered that due to the significant rise of their funds trapped in the country over the past one year, they are mulling massive reductions in their frequencies to Nigeria. For instance, foreign airlines collect Naira for their tickets to customers and exchange the same for foreign currencies for their operations. But they have been lamenting their inability to get the exchange executed through the official foreign exchange market due to the scarcity of foreign exchange resources.
A breakdown of the trapped fund's movement shows that as of December 2022, the fund stood at $549 million. The airlines' fund later rose to $662 million in January 2023 and is currently at $744 million, an increase of 11 per cent when compared to the previous month.
Following the development, United Arab Emirates, UAE, the flag carrier, Emirates Airline operating over 21 flights, suspended its operation indefinitely in Nigeria in October 2022.
But in a chat with the Director, Research, Zenith Travels Limited, Mr. Olumide Ohunayo, he stressed that the suspension of operations in\ Nigeria by Emirates Airlines has a spiral effect on the allied services in the country to the airline.
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"Apart from the Maintenance Repair and Operate, MRO, firm, other allied organisations to Emirates like hotels, catering services, car hire, security, expatriates, fuelers and other backup companies would be affected by the decision of the airline to quit the Nigerian scene.
"The Federal Government should take a cue from the Zimbabwean government, which allowed the foreign airlines operating into its country to sell tickets in dollars.
"Rather than insisting on naira sales for the airlines, dollar sales would reduce the challenge of blocked funds currently being experienced by the foreign airlines.
"The Federal Government should also merge the black market rate with the official rate, this would reduce the challenge. By and large, we should find a way out of this crisis. Zimbabwe was also affected and it has told the airlines to sell tickets in dollars."
"Even, the fuel suppliers are feeling the pains. Now, the fuel suppliers that refused to collect naira from Emirates are now collecting zero naira and zero dollars.
"So, we are all feeling the pain. I think the Nigerian oil companies should have collected naira, rather than insisting in dollars from Emirates and today, everybody on that value chain that gained from the services of Emirates are all down without jobs."
