In a growing wave of frustration across Nigeria’s travel industry, stakeholders have decried the continued practice by international airlines of selling tickets exclusively in U.S. dollars, while the Nigerian Civil Aviation Authority (NCAA) has maintained a deafening silence on the matter. Industry observers warn that the practice is damaging local trade, fuelling price hikes, and eroding the sovereignty of the naira.
Despite rising protests from the National Association of Nigerian Travel Agents (NANTA) and its over 35,000 registered members, the NCAA has not made any official comment or taken action to halt the controversial practice, even as it enforces other monetary regulations related to cross-border transactions.
At the centre of the protest is the decision by several foreign airlines operating in Nigeria to accept only dollar payments for flight bookings—a move agents say excludes local currency holders, drives up ticket prices, and encourages capital flight. According to NANTA’s National President, Yinka Folarin, the move is unjustifiable given recent improvements in the naira’s stability and the Central Bank of Nigeria’s efforts to ensure liquidity in the forex market.
“We are in this trade and understand its dynamics. There is no more justification for airlines to trade in dollars alone in Nigeria,” Folarin told our correspondent. “The government must stand up for its currency and insist that naira is respected in this market.”
Folarin further warned that Nigeria stands to lose over 40% of its travel market due to cross-border pricing arbitrage, where tickets are sold more cheaply to Nigerian travelers booking through foreign agents than within Nigeria.
Rather than address the currency discrimination issue, the NCAA has been focused on aligning with the Financial Action Task Force (FATF) directives aimed at removing Nigeria from the grey list for money laundering and terrorism financing. The regulator recently issued a directive to all international airlines flying into Nigeria, mandating compliance with the $10,000 currency declaration rule for passengers.
According to the directive (NCAA/CPD/ABV/298), airlines are required to make pre-landing announcements and distribute declaration forms to passengers carrying cash or negotiable instruments exceeding $10,000. While laudable for security compliance, travel stakeholders argue the NCAA is ignoring more pressing and direct challenges facing local consumers.
Former NANTA President, Susan Akporiaye, was emphatic about the need for a swift response. “This is about fairness and national dignity. How can we have a market where Nigerians are forced to go outside the country or through unofficial channels just to buy a plane ticket? This is unacceptable, and the NCAA’s silence emboldens it,” she said.
Economists have also weighed in, warning that continued foreign currency pricing in Nigeria could undermine monetary policy and consumer protection efforts. Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), said the NCAA must assert its regulatory authority to prevent market abuse.
“If the aviation regulator fails to act, it creates a precedent where other sectors may begin to sidestep the naira as legal tender,” Yusuf noted. “This affects financial inclusion and encourages capital outflows.”
As airline operators continue their dollar-only policy unchecked, many in the travel industry fear it could permanently distort the market. With the NCAA’s continued silence, calls for executive or legislative intervention may grow louder in the weeks ahead.