Nigerian travel agents are grappling with operational disruptions due to the Central Bank of Nigeria’s (CBN) ongoing restrictions on dollar transactions. These currency controls are hindering the ability to remit proceeds from ticket sales to international airlines, raising fresh concerns in the aviation and travel sectors.
Industry stakeholders recall similar challenges during the COVID-19 pandemic, when over $744 million in airline revenues became trapped in Nigeria due to a scarcity of foreign exchange. To mitigate losses, several foreign carriers in 2023 limited ticket sales in naira and prevented travel agents in Nigeria from issuing tickets originating outside the country.
Although the Federal Government eventually cleared the backlog of trapped funds, some airlines have since resumed dollar-only collections for certain ticket sales, a move critics argue undermines Nigeria’s monetary sovereignty.
To stabilize the situation, the International Air Transport Association (IATA) designated the United Bank for Africa (UBA) as the official repatriation bank for airline ticket funds from Nigeria. Nonetheless, challenges persist. The CBN’s $10,000 daily cap on dollar withdrawals and transfers, introduced in 2023, continues to restrict liquidity and complicate financial operations for travel agents and airlines alike.
