Passengers Face Forex Crisis As Airlines Increase Fares

Travellers are voicing their dismay and exasperation as airfares soar, making it increasingly difficult for them to embark on their desired journeys. The surging costs and economic uncertainties have left many passengers distressed.

Around two weeks after President Bola Tinubu promised to unify the nation’s multiple exchange rates, the apex bank decided to float the naira in the foreign exchange market’s Investor’s and Exporters’ Window. As a result, the naira plummeted from N471/dollar to N867/dollar.

This move has significantly impacted Nigerians, especially international students intending to resume school in September have been struck by unpredictable fluctuations in foreign exchange rates. Air ticket prices have skyrocketed, making it increasingly difficult for Nigerians to travel, especially compared to neighbouring countries like Benin and Ghana, where airfares are notably more affordable.

However, the current floating policy must do more to alleviate the situation. As the exchange rate rises, most foreign airlines find their funds trapped within Nigeria due to the scarcity of dollars on the market. This scenario has created a troublesome landscape for Nigerians who depend on reasonably priced flights for their business and personal needs.

In an exclusive interview with The Punch in Abuja, Ade Johnson, a potential traveller, revealed that he had observed a significant increase in flight prices compared to a few months ago. Many Nigerians are now exploring alternative options, with a popular choice being the Benin Republic, where airfares are considerably cheaper. Additionally, the proximity of Benin Republic to Lagos, with a travel time of less than an hour, makes it an enticing proposition for cost-conscious travellers.

Moreover, the FX situation has posed additional challenges for Nigerian students. These challenges include increased tuition fees, visa expenses, the International Health Surcharge, and the need to provide proof of sufficient funds for maintenance and upkeep. Previously, Nigerian students used Form A for tuition payments, pegged at a fixed rate controlled by the Central Bank of Nigeria. However, the current circumstances have disrupted this arrangement, leading to further financial burdens for students.

Success Apiaka, a traveller impacted by the recent increase and fluctuation in foreign currency rates, expressed frustration with its effect on her travel plans and budget. She was forced to reassess and make significant adjustments to her financial planning to accommodate the unforeseen changes.

Fortunately, Apiaka, being knowledgeable about economics, anticipated the economic difficulties ahead and took proactive measures to secure her travel plans. She booked her flight in May after paying her tuition, learning from past experiences with Form A for foreign currency transactions.

Another affected traveller, Aisha Abdullahi, revealed that currency fluctuations and the single exchange rate policy affected her travel plans. Her intended budget of N12 million now yields 12,000 pounds instead of 24,000 pounds. Abdullahi has been compelled to consider alternative arrangements, including selling off properties and liquidating investments to overcome the significant financial hurdle.

She also highlighted the drastic change in flight prices. A return ticket now costs between N800,000 and over N1 million, compared to the previous rates of N300,000 and above.

In conclusion, the ongoing forex crisis in Nigeria has deeply affected travellers and international students, creating an atmosphere of uncertainty and financial strain. As airfares continue to rise, many individuals are left with difficult decisions, and seek alternative options to cope with the challenging economic landscape. The government and relevant authorities must address the situation urgently to alleviate the burden on Nigerians and ensure smooth travel experiences for all.