The National Association of Nigeria Travel Agencies (NANTA) has renewed its opposition to the practice of dollar-only ticket sales and city sales by some foreign airlines operating in Nigeria.

NANTA specifically said that city sales contravened the Nigeria Civil Aviation Regulations (NCARs) 2023, but lauded Air France-KLM for appointing a Nigerian firm as its General Sales Agent (GSA), while Etihad Airways, which is billed to return to Nigeria in the coming weeks had also agreed to do the same.

President of NANTA, Dr Yinka Folami in an interview with The Guardian yesterday in Lagos, declared that such practices were anti-competitive and inimical to the growth of the local travel trade.

Folami, however, commended the Nigeria Civil Aviation Authority (NCAA) for its recent enforcement efforts against foreign airlines operating sales outlets in cities, saying several carriers had begun dismantling such structures in response to the regulator’s directives.

He stated that while the association recognised the right of some foreign airlines to operate under agreements that permit dollar transactions, there was no longer sufficient justification for airlines to exclude the naira from ticket sales in Nigeria.

Folami said the stability of the naira, improved foreign exchange liquidity and greater transparency in the remittance process had significantly changed the economic circumstances that previously informed the practice.

According to him, only about three foreign airlines currently engage in dollar-only ticket sales out of more than 30 airlines operating into and out of Nigeria, indicating just 10 per cent, thereby making it difficult to justify the continued practice.

He said: “Naira is a sovereign currency, it’s our naira and that’s what it is, therefore, it should denominate our transactions. So, when you conduct your trade in Nigeria, at total exclusion of naira, we just think it is unfair.

“We don’t even want to say it is unacceptable. We want to appeal to these trade partners that it is unfair, because it is not something that you will permit in your own country. It is not something that anybody is happy about.”

Folami stressed that NANTA’s objection was not aimed at creating confrontation with foreign airlines or the government, but at ensuring greater inclusion and stability in Nigeria’s aviation and travel market.

According to him, dollar-only ticket sales had particularly affected small and medium-sized travel agencies, which constitute a major part of NANTA’s membership.

According to him, NANTA has approximately 4,000 members, including 1,621 IATA-certified members.

Of the IATA-certified members, Folami said 1,274, representing more than 80 per cent, are Go-Lite members whose Billing Settlement Plan (BSP) transaction wallets did not permit dollar sales.

He appealed to the concerned airlines and the Federal government to address the situation, stressing that travel agencies operating within Nigeria should be given access to naira sales channels.

The NANTA president also rejected suggestions that the Federal government should be blamed entirely for the continued practice, particularly where Bilateral Air Service Agreements (BASAs) or other arrangements permitted certain foreign carriers to sell tickets in dollars.

Folami further commended the Central Bank of Nigeria (CBN) for the relative stability of the naira and improved foreign exchange liquidity, saying industry players had a responsibility to translate the macroeconomic gains into benefits within the aviation sector.

He said the government had already taken steps to address regulatory breaches, noting that the NCAA had issued notices and warnings to foreign airlines over compliance.

On city sales, NANTA said the practice by foreign airlines was contrary to the existing Civil Aviation Regulations.

He specifically cited Part 18.6.1.1(c) and (d), of the regulations, which provided that a foreign airline operating scheduled international air services into and out of Nigeria should not have sales offices or outlets in cities.

He said NANTA welcomed the increasing number of foreign airlines appointing Nigerian GSAs, describing the development as consistent with the regulatory framework and beneficial to the local travel trade.

He further commended Etihad Airways for its recent decision to appoint a Nigerian GSA as the Middle Eastern carrier returns to the Nigerian market.

He said: “You know today that Etihad Airways is coming back into the market with the Nigerian GSA. I would not expect a Nigerian GSA to engage in dollar sales only in Nigeria. So, I say kudos to Etihad Airways.”