The Nigerian travel industry is facing an existential threat as foreign airlines continue to sell tickets in US dollars, creating an economic drain that's crippling local businesses and robbing the nation of vital revenue.
The Dollar Domination Crisis
Travel agencies across Nigeria are raising red flags about what they describe as an "economic injustice" that's systematically undermining local businesses. Despite operating within Nigerian territory and serving Nigerian customers, numerous international carriers insist on dollar-denominated transactions, creating a parallel economy that bypasses the local financial system.
Economic Consequences for Local Businesses
The practice has created a devastating ripple effect throughout the travel ecosystem:
- Local travel agencies lose significant commission percentages when forced to operate in foreign currency
- Naira depreciation exponentially increases operational costs for Nigerian-based businesses
- Small and medium-sized travel companies face extinction as profit margins evaporate
- Nigerian consumers ultimately bear the burden through inflated ticket prices
Industry Leaders Speak Out
Veteran travel consultants describe the situation as "economic sabotage" that privileges foreign entities at the expense of local enterprises. The dollar preference creates an uneven playing field where Nigerian businesses must navigate currency fluctuations while foreign carriers operate in stable foreign denominations.
The Survival Struggle
Many travel agencies report that what should be profitable transactions become financial liabilities due to exchange rate volatility. The constant need to source dollars at premium rates has turned ticket sales into high-risk ventures rather than sustainable business operations.
Call for Regulatory Intervention
Industry stakeholders are urgently calling for government intervention to mandate local currency transactions for all domestic ticket sales. They argue that foreign airlines benefiting from Nigerian airport facilities and infrastructure should contribute to the local economy rather than draining it.
The current system not only disadvantages local businesses but represents a significant foreign exchange drain at a time when Nigeria can least afford it. As the travel industry braces for further challenges, the call for economic patriotism grows louder among industry professionals determined to protect both their businesses and the national economy.
