With the business environment becoming more unpredictable, the air transport sector and its travel partners are not left out. Despite the steady increase in airfares and a dip in the purchasing power of Nigerians, the travel agencies report a higher increase in patronage, but worry about the desperation of Nigerians to leave the country in droves, FELICITAS OFFORJAMAH reports.
Declining to 32.15 per cent in August 2024 from 33.40 per cent in July 2024, figures from the National Bureau of Statistics (NBS) revealed that inflation is still much higher than the 25.8 per cent reported in August 2023 and the 29.90 per cent at the beginning of the year.
Also, the past six months on air fares saw a steady increase, since the beginning of this year as compared to last year.
The National Bureau of Statistics (NBS) Transport Fare Watch revealed that the average fare paid by air passengers for specified routes in a single journey was N89,975.68 in January 2024, implying that there was a five per cent increase in average airfares between December 2023 and January 2024, with fares rising from N85,692.12 to N89,975.68 in January 2024.
Flight prices in Nigeria witnessed a 20.53 per cent increase from January 2023 to January 2024, pushing the average fare for a single journey on selected routes to N89,975.68, an increase from N74,648.65 the year before.
For February 2024, the average fare paid by air passengers for specified routes on a single journey was N88,000, showing a decrease of 2.20 per cent compared to the previous month (January 2024). On a year-on-year basis, the fare rose by 18.03 per cent from N74,558.11 in February 2023.
Marching to the month after February, the average fare paid by air passengers for specified routes for a single journey was N88,964.86 indicating an increase of1.10 per cent compared to the previous month (February 2024). On a year-on-year basis, the fare rose by 18.96 per cent from N74,782.43 in March 2023.
April saw air passengers paying an average fare of N89,189.19 for specified routes on a single journey, showing an increase of 0.25 per cent compared to the previous month (March 2024). On a year-on-year basis, the fare rose by 19.00 per cent from N74,947.30 in April 2023.
In May 2024, the average fare paid by air passengers for specified routes on a single journey was N89,432.43, showing an increase of 0.27 per cent while compared to the previous month (April 2024). On a year-on-year basis, the fare rose by19.32 per cent from N74,948.78 in May 2023.
The average fare paid by air passengers for specified routes on a single journey was N89,886.84 in June 2024, showing an increase of 0.51 per cent while compared to the previous month (May 2024). On a year-on-year basis, the fare rose by 14.18 per cent from N78,721.62 in June 2023.
The month dividing this year into half, saw air passengers paying an average fare of N98,561.74 for specified routes, and single journeys, showing an increase of 9.65 per cent compared to the previous month (June 2024). On a YoY basis, the fare rose by 25.12 per cent from 78,775.74 in July 2023.
From data sourced from UN World Population Prospects 2024, Africa has lost people to other regions such as Europe, Northern America, and Oceania.
Air transport being one of the modes of transport and Nigeria being a major player,998,430 people left the region for other continents in 2010. In 2020, 248,320 people left, but in 2023, it spiked to 436,290 people who left the region. This movement was propelled by various reasons, especially economic and geopolitical factors.
Adjacent to this situation, a State of the Employed Report by Paid HR disclosed that 78per cent of workers in Nigeria’s commercial hub, Lagos, earn less than N100,000 per month. Yet, Japa (relocation), was second out of the five top things Lagosians were saving for in 2024.
This report, which was revealed last month and based on responses from 1,500participants, shows that those aged 20 to 30 years typically earn a median salary between ₦49,000 and ₦73,000. It shows that most of these workers live above their primary means of income and barely have enough to save and invest.
Subtly conferring the quandary of Nigerian citizens in air travel, travel agencies in an interview with The Guardian, revealed that the prevailing economic conditions made citizens even more desperate to leave the country, increasing flight bookings across the country.
Ezeweputaku Uchenna, who is the owner of the travel and tour agency, De Koko T&T, admitted that she got more patronage from Nigerians this year.
“To be honest, I had more turn out of Nigerians this year. It’s not even year-end but the turnout this year was double of 2023’s own.”
Explaining this phenomenon, she said that it is because Nigerians are frustrated and know that the more they wait, the more there’s a hike in the cost of living, so they sell whatever property they lay their hands on, including getting loans from banks.
“I have more patronage from Nigerians this year because most of them are determined to Japa as a result of the hard times like terrorism and hikes in prices. My senior brother, Air Peace CEO, also slashed the price of air tickets, so people are encouraged.”
Uchenna, however, expressed worry over the desperation of young girls buying flight tickets to leave the country with no tangible work experience.
“Where I encountered a little difficulty was when some clients refused to pay when the embassy approved their visa. I also don’t know if this should be a challenge, but the fact that most young girls between the ages of 16 and 25, tell me they are ready for Japa with no tangible work experience, leaves me worried because they may fall into the trap of human traffickers.
“That’s also a challenge because some of our girls don’t mind being sold to prostitution. So far you are taking them to Europe.”
Senior Travel/Education Consultant at Dinspira Travel Nig. LTD, Golden Okoye, said that the increase in air fares last year was a shock to Nigerians and some thought the fare prices would drop and hovered slowly on their travel plans.
However, seeing that the fare didn’t drop as they hoped for and there was a fare increase; a lot of people have adjusted to the new normal and decided to go ahead and take the trips, as there is a projection that the exchange may keep rising leading to more increase in fare prices.
“This year has been quite challenging for every business owner. But as a consultant in the travel industry, I think the greatest challenge I have had is getting uninformed clients. This is because of the japa syndrome, and the hardship a lot of people are facing in Nigeria. There has been a rise in clients who initially had no plans to leave Nigeria contacting us to make an enquiry and ask for ways to relocate out of Nigeria.
“This may seem like a good thing, but most of these people do not have the financial resources nor the skills that will help them to achieve their relocation dream, and the ones that have the financial resources often ask for a ‘sharp’ way to move. Others, out rightly ask us for illegal ways to move,” Okoye explained.
The Senior Consultant said that it is challenging because previously, most of their clients were people who desired to travel abroad – people who have done basic research and have a planned destination.
“However, the reverse is the case now. Our greatest challenge is working with desperate clients who are mostly uninformed about requirements for travel or basic immigration policies. The time and energy wasted in schooling them about the ineligibility to go to popular countries they want could be invested in filling a client application form,” the travel agent said.
A travel agent, who preferred anonymity, said that he got an unusually high patronage this year compared to past years.
“Looking at what we faced this year, economic and politics-wise, I thought my business would be greatly affected. On the contrary, there has been high traffic in bookings, and most customers apply for relocation instead of the usual holidays,” the travel agent said.
He also explained that the boom in his business is a result of the patronage of youngsters who are desperate to leave the country for a better life. In addition, he said that most of his customers, who are young males apply for studying abroad, and the young ladies apply more for holidays, jobs, or are travelling with a certain association or organisation.
“The money used for relocation and travelling abroad is very high. As for how my customers get the money despite the biting situation in Nigeria, I can’t tell. I do my job. There are even higher traffic bookings this month and probably for subsequent months due to the holidays. So, in a way, the ‘Tinubunised economy’ favoured me,” he said.
