FX SCARCITY: The problem associated with the scarcity of foreign currency in Nigeria, especially with the availability of the United States Dollars is now affecting the operations of foreign airlines, as Emirates Airlines plan to suspend flying to Nigeria.
What We Know
On Thursday, Emirates airline announced the suspension of its flight operations in Nigeria from September 1, 2022.
According to the airline, the suspension became necessary following its inability to repatriate its funds from Nigeria.
Clariform recalls that international carriers operating in Nigeria have repeatedly complained about their inability to repatriate funds to their home countries.
This concern has been raised on many occasions with officials of the Federal Ministry of Aviation, as well as those at the Ministry of Finance.
Our investigations gathered that these airlines have not been able to repatriate over $600m accrued revenue due to the inability of the Central Bank of Nigeria to make the United States dollar available for the carriers to do so.
Notable Quote
In a statement this Thursday Emirates Airlines have said that:
“has tried every avenue to address our ongoing challenges in repatriating funds from Nigeria, and we have made considerable efforts to initiate dialogue with the relevant authorities for their urgent intervention to help find a viable solution.”
Th statement added: “Regrettably there has been no progress. Therefore, Emirates has taken the difficult decision to suspend all flights to and from Nigeria, effective September 1, 2022, to limit further losses and impact on our operational costs that continue to accumulate in the market.”
“We sincerely regret the inconvenience caused to our customers, however, the circumstances are beyond our control at this stage. We will be working to help impacted customers make alternative travel arrangements wherever possible.”
Emirates however, noted that should there be any positive developments in the coming days regarding their blocked funds in Nigeria, the airline would, of course, re-evaluate its decision.
The airline concluded:
“We remain keen to serve Nigeria, and our operations provide much-needed connectivity for Nigerian travellers, providing access to trade and tourism opportunities to Dubai, and to our broader network of over 130 destinations,” the global carrier stated.”
