Aviation experts are backing Emirates Airlines’ decision to charge passengers in dollars, citing the airline’s dollar-denominated costs and funds that are currently inaccessible in Nigeria.
They argue that, given the financial pressures facing foreign airlines in the country, implementing dollar pricing is a practical response to the ongoing economic challenges.
A member of the Aviation Round Table, Olumide Ohunayo, said that the inconsistency in Nigeria’s aviation policies and airlines having to pay for various services in dollars made it difficult to enforce naira pricing, according to The Punch.
Ohunayo said “Emirates comes here, they pay for services at the International Airport to the agencies in dollars. They pay for fuel in dollars.
“If you can charge them in dollars in Nigeria, what will hold them back from charging in naira? You cannot have a law that you will enforce on others, and you will not implement. If the agencies of the government are collecting dollars at the international airport for services rendered— from NAMA to FAAN to NCAA and to fuel regulators — why will they not also sell in dollars?”
He elaborated that airlines have faced significant financial losses due to exchange rate fluctuations and funds being trapped in Nigeria.
Ohunayo stated that it is reasonable for airlines to charge in dollars if it provides a competitive edge, noting that in some instances, dollar-denominated tickets can even be cheaper than those priced in naira.
“I have gone to an airline’s website recently. I also had to check with Emirates. Emirates’ dollar-denominated ticket that was on the website was cheaper than the other airline that was selling in naira.
“So, I would prefer to go and buy the dollar ticket rather than the naira, which is more expensive… but you cannot force them when they are paying for services in Nigeria in dollars,” he noted.
The President of the Association of Foreign Airlines and Representatives in Nigeria, Kingsley Nwokoma emphasized that any complaints regarding this issue should be addressed through the appropriate channels.
He pointed out that the option to purchase tickets in either naira or dollars should ultimately be a matter of choice for customers.
“There is a channel for complaints. The NCAA is there; they have a department for that kind of issue, and the ministry is there. My take on all this is that there should be no compulsion. It should be a choice because most people who buy tickets online use their dollar cards. So, it is a choice.
“If I am going to buy a ticket from a travel agency in Nigeria, I should buy in naira because that is the currency I want,” Nwokoma expounded.
He cautioned that mandating dollar purchases universally could lead to significant disruptions, especially for those using local channels to buy tickets.
“There will be disruption in the system because imagine if all airlines in Nigeria insist that tickets should be bought with USD; there will be problems. Everybody making a complaint should go to the right source, and we will take it from there,” he said.
The Chief Executive Officer of Centurion Security Limited, John Ojikutu (retd), also threw his support behind foreign airlines charging Nigerian customers in dollars, saying the practice was justified given the economic environment in which those airlines operate.
He highlighted that foreign airlines pay for services at Nigerian airports in dollars and should not be expected to sell tickets in naira under these circumstances.
“Is everybody expecting that it won’t happen when they won’t take their own money in dollars?” Ojikutu asked, referring to the foreign airlines’ decision to charge for tickets in dollars.
“They pay for their services in Nigeria in dollars. I have said several times that if we lose the foreign airlines, we are going to lose a lot. That is the reason they went begging Emirates to come back.”
Ojikutu emphasized that this issue was likely a key part of the discussions that led to Emirates’ return to Nigeria after its temporary exit from the market.
