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The Federal Government of Nigeria has announced plans to end the sale of flight tickets in United States dollars by foreign airlines operating in the country, in a renewed effort to protect the naira and strengthen the nation’s foreign exchange system.
Minister of Aviation and Aerospace Development, Festus Keyamo, confirmed the move during a stakeholder meeting in Abuja, stating that all ticket sales must revert to the local currency. According to him, allowing dollar-based transactions in Nigeria’s aviation sector undermines the naira and contributes to rising forex demand pressures.
For years, travelers in Nigeria have struggled with high airfares as several foreign carriers priced their tickets in dollars, citing difficulty in repatriating trapped funds and currency instability. The Central Bank of Nigeria (CBN) had previously intervened to clear outstanding backlogs, but challenges persisted due to limited forex availability.
Keyamo noted that the government is engaging with the CBN and the International Air Transport Association (IATA) to ensure a smooth transition that balances airline interests with consumer protection. He emphasized that Nigeria, as a sovereign nation, cannot sustain a system that sidelines its currency in favor of the dollar for domestic ticket transactions.
Industry experts say the move could help ease pressure on the naira and restore confidence in Nigeria’s monetary policy. However, they caution that foreign airlines might adjust fares or limit seat availability if currency volatility remains unresolved.
Aviation analysts argue that the enforcement of naira-based ticket sales must be accompanied by policies that guarantee repatriation of legitimate earnings and ensure transparency in exchange rate mechanisms. Without these safeguards, they warn, the policy could face compliance challenges.
This policy shift forms part of the government’s broader economic reforms designed to strengthen the financial system, boost investor confidence, and curb speculative demand for dollars. The aviation sector, a critical pillar for trade and tourism, is expected to feel the immediate impact of the new directive.
If implemented effectively, the end of dollar-denominated ticket sales could set a new precedent for currency discipline across other sectors, while signaling Nigeria’s determination to reclaim control over its domestic financial operations