Airfares To US, UK, Others Jump By 55%

The depreciation of the naira against the United States dollar by 55 percent at the official foreign exchange market has led to a depreciation in airfares on international routes in Nigeria.

The naira had dropped from approximately 900/dollar to over 1,400/dollar on Monday after the FMDQ Exchange, which records data the nation’s official exchange rate, reviewed its methodology for calculating the rate.

The review came after the Central Bank of Nigeria accused approved foreign exchange dealers of reporting false figures.

However, barely 24 hours after the movement of the official exchange rate, international airlines operating in Nigeria moved the exchange rate for pricing their tickets to from about N900/dollar to N1,421/dollar.

The development led to approximately 55 percent increase in international airfares on Nigerian routes.

Findings showed that ticket prices on Lagos-London-Lagos, Lagos-New York-Lagos, Lagos-Johannesburg, Lagos, among other top destinations had increased commensurately.

The President of the National Association of Nigerian Travel Agencies, Susan Akporiaye, who confirmed the sharp increased, said the development would compound the woes of travel agencies.

“We have been feeling the pinch for a long time, and the situation is just getting worse. People who are traveling are not doing so for fun; they are traveling for serious business like medical or even education. It’s no longer about leisure.

“For instance, an air ticket that used to cost $1000 has now surged to N1.5m. The financial strain is a necessity for travelers, forcing them to squeeze their budgets,” Akporiaye said.