BA expected to be the next to suspend Nigerian operations as other carriers look set to follow Emirates

SEVERAL more international operators in Nigerian aviation industry look set to join Emirates Airline sand suspend operations in response to the current foreign exchange crunch that has prohibited them from repatriating ticket sales revenue from the country.

As a result of the scarcity of foreign exchange in Nigeria, at least, $600m belonging to over 20 foreign airlines has been held in the country since the beginning of the year. Because they are unable to convert their earnings from naira into dollars due to the dollar scarcity the Central Bank of Nigeria (CBN) is witnessing, these airlines are unable to repatriate their funds to their home countries.

Earlier this week, Emirates Airlines announced plans to suspend all flights to and from Nigeria with effect from September 1 in response to the crisis. British Airways has already reduced its flight frequencies to Nigeria and has also informed its passengers that a hike in the cost of its flight tickets is imminent.

In June this year, the International Air Transport Association expressed concerns over the decision by Nigerian government to block foreign airlines from repatriating ticket sales revenue running into $450m (N188.6bn) to their respective countries. Nigeria gets about 90% of its US dollars from the sale of crude oil but the country has consistently not been able to meet its approved crude production quota on a monthly basis due to oil theft among other problems.

This has severely impacted on the country’s foreign exchange earnings, making it tough for the CBN to make dollars accessible for repatriation by foreign airlines with operations in Nigeria. Emirates Airlines said that it has tried every avenue to address the challenges, including making considerable efforts to initiate dialogue with the relevant authorities for their urgent intervention to help find a viable solution.

Kingsley Nwokeoma, the president of the Association of Foreign Airlines and Representatives in Nigeria, said more international carriers would join Emirates Airlines soon if nothing was done to address their concerns. He added: “This is just the beginning. It is over $1bn that is being held and they cannot repatriate.

"If other countries are like Nigeria, there will not be any industry because this money is used for maintenance. Even the money used to pay their staff in Nigeria is coming from other climes.

“Aviation industry is all about 100% safety and if there is no money, safety will not be 100% guaranteed. Emirates has kick-started it and I’m sure that you are aware that British Airways has cut flights into Nigeria and that is how it is going to start."