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.

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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.

“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.

Ifeoma Okeke-Korieocha

Ifeoma Okeke-Korieocha is the Aviation Correspondent at BusinessDay Media Limited, publishers of BusinessDay Newspapers. She is also the Deputy Editor, BusinessDay Weekender Magazine, the Saturday Weekend edition of BusinessDay. She holds a BSC in Mass Communication from the prestigious University of Nigeria, Nsukka and a Masters degree in Marketing at the University of Lagos. As the lead writer on the aviation desk, Ifeoma is responsible and in charge of the three weekly aviation and travel pages in BusinessDay and BDSunday. She also overseas and edits all pages of BusinessDay Saturday Weekender. She has written various investigative, features and news stories in aviation and business related issues and has been severally nominated for award in the category of Aviation Writer of the Year by the Nigeria Media Nite-Out awards; one of the Nigeria’s most prestigious media awards ceremonies. Ifeoma is a one-time winner of the prestigious Nigeria Media Merit Award under the 'Aviation Writer of the Year' Category. She is the 2025 Eloy Award winner under the Print Media Journalist category. She has undergone several journalism trainings by various prestigious organisations. Ifeoma is also a fellow of the Female Reporters Leadership Fellowship of the Wole Soyinka Centre for Investigative Journalism.