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They contend that, in light of the financial difficulties
encountered by international airlines in the region, adopting dollar pricing is
a sensible approach to the current economic situation.
Olumide Ohunayo, a member of the Aviation Round Table, noted
that the unpredictability of Nigeria's aviation regulations, along with the
necessity for airlines to settle various service fees in dollars, complicates
the enforcement of pricing in naira.
“Emirates comes here, they pay for services at the
International Airport to the agencies in dollars. They pay for fuel in
dollars,” Ohunayo said.
“If you can charge them in dollars in Nigeria, what will
hold them back from charging in naira? You cannot have a law that you will
enforce on others, and you will not implement. If the agencies of the
government are collecting dollars at the international airport for services
rendered— from NAMA to FAAN to NCAA and to fuel regulators — why will they not
also sell in dollars?”
Ohunayo elaborated that airlines have experienced financial
setbacks as a result of exchange rate volatility and funds being immobilized in
Nigeria.
He contended that it is reasonable for airlines to set
prices in dollars if they deem it competitive, noting that, in certain
instances, tickets priced in dollars were actually more affordable than those
listed in naira.
“I have gone to an airline’s website recently. I also had to
check with Emirates. Emirates’ dollar-denominated ticket that was on the
website was cheaper than the other airline that was selling in naira.
“So, I would prefer to go and buy the dollar ticket rather
than the naira, which is more expensive… but you cannot force them when they
are paying for services in Nigeria in dollars,” he noted.
The President of the Association of Foreign Airlines and
Representatives in Nigeria, Kingsley Nwokoma, emphasized the importance of
addressing complaints through the appropriate channels.
He also noted that customers should have the freedom to
choose whether to purchase tickets in naira or dollars.
“There is a channel for complaints. The NCAA is there; they
have a department for that kind of issue, and the ministry is there. My take on
all this is that there should be no compulsion. It should be a choice because
most people who buy tickets online use their dollar cards. So, it is a choice.
“If I am going to buy a ticket from a travel agency in
Nigeria, I should buy in naira because that is the currency I want,” Nwokoma
explained.
He cautioned, however, that requiring dollar purchases
universally could lead to considerable disruption within the system, especially
for individuals utilizing local channels for ticket acquisitions.
“There will be disruption in the system because imagine if
all airlines in Nigeria insist that tickets should be bought with USD; there
will be problems. Everybody making a complaint should go to the right source,
and we will take it from there,” he said.
The Chief Executive Officer of Centurion Security Limited,
John Ojikutu (retd), expressed his endorsement of foreign airlines charging
Nigerian customers in dollars. He argued that this approach is reasonable
considering the economic conditions faced by these airlines.
Ojikutu pointed out that foreign carriers incur costs for
services at Nigerian airports in dollars, making it unreasonable to expect them
to sell tickets in naira in this context.
“Is everybody expecting that it won’t happen when they won’t
take their own money in dollars?” Ojikutu asked, referring to the foreign
airlines’ decision to charge for tickets in dollars.
“They pay for their services in Nigeria in dollars. I have
said several times that if we lose the foreign airlines, we are going to lose a
lot. That is the reason they went begging Emirates to come back.”
Ojikutu highlighted that this was probably a key aspect of
the conversations that led to Emirates' return to Nigeria following its brief
withdrawal from the market.
“I’m sure this was part of the thing they would have told
them was that they could sell their tickets in naira, but they pay for all
services in the airport in dollars. Everything they buy in the airport is paid
for in dollars.”
An aviation expert disclosed that Nigeria generates around
$2 billion each year from foreign airlines, while raising concerns about the
management of these funds by the different agencies involved.
“The money we collect in dollars every year from these
foreign airlines is about $2bn. Where is the dollar? That is the question we
should be asking the agencies collecting the money. From FAAN to NAMA, NCAA to
fuel marketers,” he stated.
The National Association of Nigeria Travel Agencies recently
engaged in discussions with Emirates representatives regarding the airline's
choice to sell tickets in dollars to Nigerian customers.
After the meeting, NANTA's leadership resolved to seek
additional dialogue, advocating for the inclusion of a naira payment option
alongside the dollar ticket sales.