• Saturday, December 09, 2023
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Airfares to rise, as airlines’ exchange rate hits N610/$1


Airlines’ Rate of Exchange, (RoE) has jumped from N582 per dollar to N610 per dollar.

This would them mean that international fares would further increase in days to come.

The development follows the rising foreign airlines’ trapped funds which have now surpassed $700million.

It was also gathered that the rate has risen twice in two months. In March 2023, the rate was increased from N460/$ to N551/$ and also in April to N610/$.

This is also as airlines trapped funds in Nigeria saw a sharp rise from $744million in March to $802 million in April despite several means deployed to avoid collection of their funds in naira, so as to reduce the amount of money trapped in Nigeria.

Susan Akporiaye, the President of the National Association of Nigerian Travel Agencies (NANTA), who confirmed the rise in Airlines’ Rate of Exchange said: “The implication is that Airfares would go up again.

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“Airfare that was N1.5m yesterday is now N1.7m and a report reaching us from IATA indicated that the Airlines are trying to match the rate that CBN is selling to them. CBN is not selling to them at the official rate.”

Already a return ticket from Nigeria to London has risen in the last one year from N350,000 to about N1.5million to N1.8 million (For passengers paying in naira).

Travel agents said the cost of fares will still rise following the exchange rate.