January, 06, (THEWILL) – Foreign airlines operating in Nigeria have concluded arrangements to resort to ticket sales in dollar, thereby ending the roller-coaster experience of naira transactions.
THEWILL authoritatively gathered that the airlines have vowed to resort to dollar ticket sales to address the backlog of their trapped funds trappria in Nigeria.
The sources confirmed to THEWILL that Nigerian authorities have acquiesced to the arrangement in a win-win strategy to pacify the foreign airlines who have threatened to exit Nigeria’s airspace over the $792 million trapped funds.
THEWILL learnt that Qatar Airlines has commenced the implementation of dollar ticket sales while others foreign airlines will follow suit soonest as activities resume fully in the new year.
Turkish Airlines, Emirate Airlines, British Airways, and a host of foreign airlines recently warned of their imminent exit from Nigeria if funds trapped in the country were not released soon.
In its media briefing held on December 8, the International Air Transport Association (IATA) raised an alarm over the total amount owed by countries in Africa and the Middle East, apportioning over 70 percent of the total debt owed by Africa to Nigeria.
Kamil Alawadhi, Regional Vice President, Africa and Middle East, speaking at the press briefing, said, “Nigeria alone accounts for almost half of blocked or trapped funds valued at US$2.57 billion.”
Nigeria’s debt or trapped funds belonging to these foreign airlines is $792 million, just $66 million short of the total trapped funds owed by Egypt ($348 million), Algeria ($199 million).
About the Author
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
