Air fares to rise further as foreign airlines FX rate hit N634/$

Foriegn airlines operating in Nigeria have again raised Rate of Exchange, (RoE) from N610 per dollar to N634 per dollar.

The implication of moving the airline FX rate to N634 per dollar implies that passengers would be paying more for international fares.

The development follows the rising of foreign airlines’ trapped funds which have now surpassed $800million.

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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.

It was also gathered that the rate has risen three times in three months. In March 2023, the rate was increased from N460/$ to N551/$ and also in April to N610/$. In May it has risen to N634 per dollar.

Bankole Bernard, chairman of Airlines and Passengers’ Joint Committee (APJC) of the International Air Transport Association (IATA) who confirmed the rise said the N634 new rate is slightly lower than the black market rate.