The National Association of Nigeria Travel Agencies (NANTA), which embodies travel agencies operating in Nigeria, claimed to have lost $500 million in 2022.
Additionally, they disclosed that despite increased prices, the industry saw over 720,000 job losses since fewer than 30% of tickets were sold by local brokers in Nigeria owing to blocked aviation revenues.
They asked the FG to proceed with the Bilateral Air Services Agreement (BASA) and other existing aviation regulations, which would allow major domestic and international investors into the sector.
At a press conference conducted on Friday in Lagos, Mrs. Susan Akporiaye, National President of NANTA, revealed this.
Losses: According to the NANTA President, the organization lost $500 million in revenue in 2022 as a result of a decline in ticket sales caused by the fact that foreign airlines operating in Nigeria blocked all low ticket inventories on their websites and instead continued to sell the highest inventories because it was difficult for passengers to find affordable tickets.
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She said that the $550 million in stranded cash was the cause of the over 400% increase in tickets to all overseas locations. She continued:
The current predicament has caused Nigerian travelers to use agents in other African nations.
Local agencies only sold fewer than 30% of the tickets in Nigeria, costing the country’s government a significant amount of tax revenue.
“The international airlines have also prevented local travel brokers from selling tickets emerging from other countries into Nigeria” in order to “limit the amount of money that would be stuck in Nigeria.”
NANTA expressed its anguish, anxiety, and worry over the employment losses reported in the industry, noting security dangers to Nigerians connecting on cheaper flights across international borders.
A parallel dollar monetary policy in the tourism industry is shameful because it goes against the established national naira monetary policy.
We are also concerned that none of our political parties has thought it vital to examine the economics of aviation, notably, it’s uniform socio-economic and security prospects.
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We urge the incoming administration to closely monitor the Bilateral Air Services Agreement (BASA) and other existing aviation regulations, which will help attract serious domestic and international investment to our country. We are also still accessible for conversation.
Despite providing more than 3.6% of the country’s GDP in 2021, the industry has had over 720,000 job losses as a result of systemic irregularities, according to the association’s national auditor Mr. Yinka Olapade.
He encouraged the federal government to look into the issues in the sector since it is a goldmine with the potential to reposition the country in several ways.
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