Naira’s Demise: Emirates’ Switch to Dollars Signals a Dark Future for Nigerian Currency

The recent decision by Emirates to commence ticket bookings in dollars for its Nigerian routes has sparked widespread concern among stakeholders in the travel industry. The move, announced ahead of the airline’s resumption of flights on October 1, has raised questions about the potential impact on the Nigerian economy and the value of the naira.

Industry experts, including Susan Akporaiye, Managing Director of Topaz Travels and Tours, and Olumide Ohunayo, Director of Research at Zenith Travels, have expressed concerns about the implications of dollar-based ticket sales. They argue that this move will increase pressure on the naira, leading to scarcity and potential fare increases.

Akporaiye noted that the decision will force travelers to purchase dollars on the black market, exacerbating the already challenging foreign exchange situation in Nigeria. Ohunayo suggested that Emirates may be employing a marketing strategy, but emphasized the need for the airline to reconsider its approach to avoid alienating travel agents and Nigerian customers.

The development has also sparked debate about the airline’s motivations and potential consequences for the Nigerian market. Ohunayo recalled that Emirates’ previous withdrawal from the Nigerian market was partly due to issues with trapped funds and dollar-denominated payments to fuel suppliers. He urged the airline to renegotiate these terms to ensure a smoother re-entry into the market.

A review of ticket prices on the Emirates website reveals competitive fares in dollars, which, when converted to naira, appear attractive compared to other airlines. However, industry stakeholders remain skeptical, citing concerns about the long-term implications of dollar-based ticket sales on the Nigerian economy.

Yinka Folami, President of the National Association of Nigeria Travel Agencies (NANTA), emphasized the need for Emirates to respect Nigeria’s sovereignty and legal tender, the naira. He expressed worries about the potential pressure on the naira and the exclusive nature of the airline’s visa policy.

Source: businessday