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Airfares drop as foreign carriers unleash low-priced tickets
Airfares drop as foreign carriers unleash low-priced tickets
Foreign airlines operating in Nigeria have begun to unblock their low-priced fares on Nigerian routes as the Central Bank of Nigeria completes the payment of about $7bn backlog, which includes over $700m unremitted ticket revenue.
The CBN had about two weeks ago announced the completion of payment of $7bn legacy debt, which included FX forward contracts among foreign exchange-denominated debts.
The CBN, however, declared about $2.4bn of the $7bn debt invalid, saying it could not be verified due to improper documentation among other infractions.
The International Air Transport Association, the trade body representing foreign airlines, has yet to verify the clearance of the entire $700m but findings showed on Saturday that the foreign carriers had begun to unblock their low-priced tickets.
To maximise their yields, foreign carriers had over 24 months ago blocked their low-priced tickets on Nigerian routes after ticket revenue running to hundreds of millions of dollars became trapped in Nigeria.
The development led to a sharp increase in fares on the Nigeria routes and was exacerbated by the sharp depreciation of the naira against the United States dollar, with economy fares on popular destinations such as the Lagos-London-Lagos route going for over N3m.
The CBN began the gradual clearance of the debt but the new administration of the apex bank later fast-tracked the payment, leading to clearance of major parts of the debt between late last year and so far this year.
Following the CBN announcement of the clearance of the $7bn, findings revealed that most of the airlines had released their low-priced fares.
The development was confirmed by the Chairman of the National Association of Nigerian Travel Agents, Susan Akporiaye.
She, however, revealed that virtually all the foreign carriers opened their low fares before the CBN announcement of the payment of the $7bn about two weeks ago, adding that low fares were opened about two weeks before the apex bank announcement.
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Akporiaye said, “All of them (foreign airlines) have opened up all the inventories before the final backlog of forex was cleared. It is not now that it was cleared. It was cleared earlier in March.
“It is the only airline that has not done that. All of them have opened up all the inventories before the final forex backlog was cleared.
“We had a few that had issues – the unverified ones. There were some transactions for which some documents were not available. They were unverified. And those that were not cleared in February because they were unverified are those that have just been cleared.”
The NANTA chairman pointed out that one foreign airline had yet to open up its low-priced tickets, saying, “Before this final clearance, the airlines had already reduced inventories, except for one airline, which I won’t mention due to privacy, and I’m sure that the reason why they haven’t complied is a management thing.”
She emphasised that the airlines had been cooperative, but challenges such as unverified transactions caused delays.
“The money the airlines are saying that they are still owed is money with the commercial banks and not with the government, because commercial banks are private. They are not government entities,” Akporiaye added.
Findings showed that commercial banks were still reconciling with the foreign airlines with a view to clearing the final payment following the announcement of the clearance of the final backlog by the CBN two weeks ago.
“At times, the commercial banks are slower than the communication from the CBN. We will ask the airlines to contact their banks and we will have a clearer position. Then we will be able to respond to your inquiry based on verified data,” an IATA official told one of our correspondents on condition of anonymity because the official was not authorised to speak on the matter.
An IATA spokesperson confirmed the development, noting that the body would come with its position on the matter soon.
“IATA is engaging with its members on the situation regarding blocked funds in Nigeria,” a spokesperson for the global body in Geneva said when an update was sought following the CBN announcement.
However, findings showed that the airfares on the Nigerian route recorded a drop despite the opening of low inventories by foreign carriers.
This was confirmed by the NANTA chairman, Akporiaye.
“The release of lower inventories will not necessarily make airfares low because of the rate of exchange,” she noted.
It was discovered that there was a notable difference in the costs of air tickets sold on March 4, 2024, compared to those on Saturday.
As of Saturday, the round-trip economy class ticket from Lagos to London varied in cost among different airlines.
RwandAir Express offered it at N1,102,563; Royal Air Maroc at N1,628,675; and Ethiopian Airlines at N1,641,249.
However, on March 4, 2024, a round-trip economy class ticket from Lagos to London attracted significantly higher prices. Air France priced it at N2,482,138, while Lufthansa offered it at N1,966,165. Qatar Airways provided the same ticket for N2,016,824, and KLM priced it at N2,448,740.
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The average fare for flights on March 30 amounted to approximately N1,457,495.67, reflecting a decrease from the prices observed on March 4, which averaged approximately N2,478,466.75
This price drop represents a 41.19 per cent decrease in the cost of round-trip economy class tickets from Lagos to London.
A trip from Lagos to New York also recorded a drop in fare in the same period.
For the Lagos to New York route on Qatar Airways, the ticket was sold for N2,982,049 as of March 4. However, as of Saturday, it was sold for N1,989,098.
KLM charged N3,158,314; Air France priced it at N3,148,308; United Airlines listed it at N3,193,185, and Delta Air Lines offered the ticket for N3,310,097, on March 4, 2024.
Agents speak
A travel agent with Fadpaulo Travel and Tours Limited, Fadeyi Paul, expressed concerns about the actual impact of the low inventory fares on consumers, saying, “It is still on the high side; there are no low inventories yet. Like Lufthansa.
“But the European airline that I worked with a few days ago has low fares.”
He noted that despite the appearance of low fares, taxes attached to the fares often inflate the final cost for travellers.
Paul stated, “Moreover, the ones which have low inventories, the taxes attached to them are high? They find a way around it and make you still pay one way or the other. If you see a fare that costs $211, you will still end up paying N1.4m.
“So some of them have released low inventories but still make taxes high. So they have a way of working around it to get their money back.”
Another travel agent, Enebeli Alloy, acknowledged that airlines were indeed releasing cheaper fares but noted that the rates were still relatively high.
“The airlines are complying. They are releasing some cheap classes on the system now. The only complaint now is that the rate at which they are selling is still high. But I believe it will reduce gradually. It won’t be done overnight.”
Adewale Adediran of Untamed Travels and Tours echoed similar sentiments, stating, “The inventories have been released although not all, but it is better than what we were experiencing before now.”
Adediran raised concerns about the significant fare differences between travelling from Nigeria compared to neighbouring countries on similar routes.
“The fares are on the high side compared to our neighbouring countries. For example, if one is travelling from Lagos to London and Cotonou to London with the same airline and at the same hour, what they are charging there is lower than what they are charging here. They need to work on that situation,” he added.
Sanction threats
The Federal Government had earlier this month issued a warning to foreign airlines regarding the release of low inventory tickets, threatening sanctions for non-compliance.
During a meeting with the Nigerian Civil Aviation Authority and aviation stakeholders, foreign airlines pledged to enhance transparency by making low-inventory tickets more accessible to the Nigerian middle class.
The Director of Public Affairs and Consumer Protection, NCAA, Michael Achimugu, said that the meeting had in attendance representatives of the National Association of Nigerian Travel Agencies.
While some airlines claimed to have opened low inventory tickets, NANTA confirmed discrepancies, leading to instructions for all airlines to comply.
“A majority of them are reported to have complied by opening low inventory tickets. For those who have yet to do so, we have given them a week or so,” stated Achimugu.
He also mentioned that sanctions would apply to airlines failing to comply, pending confirmation of the exact deadline.
The government had recently disbursed part of the $700m trapped air ticket funds to foreign airlines, signalling ongoing efforts to address aviation industry challenges.
Airfares drop as foreign carriers unleash low-priced tickets
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News
First Ogun Pilgrims Arrive Saudi Arabia as Gateway Airport Begins Hajj Operations
First Ogun Pilgrims Arrive Saudi Arabia as Gateway Airport Begins Hajj Operations
The first batch of pilgrims from Ogun State has successfully arrived in the Kingdom of Saudi Arabia, marking the official commencement of the 2026 Hajj operations from the state and the debut of international flights at the Gateway International Airport, Iperu-Remo.
The pilgrims, numbering 345, departed Nigeria on Sunday night aboard a direct flight from the newly inaugurated airport and landed at the King Abdulaziz International Airport, Jeddah, in the early hours of Monday.
Officials disclosed that the contingent comprised both male and female pilgrims, alongside members of the Ogun State Muslim Pilgrims Welfare Board, who are overseeing their welfare throughout the pilgrimage.
Upon arrival, the pilgrims were received by Saudi authorities and subsequently transported to Medina, where they are expected to commence their spiritual activities ahead of the main Hajj rites in Makkah.
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The development represents a significant milestone for Ogun State, as the Gateway International Airport handled its first international flight since its commissioning in April 2026. The airport’s utilisation as a Hajj departure centre followed its approval by the National Hajj Commission of Nigeria (NAHCON), positioning it as a key hub for pilgrimage operations in the South-West region.
Governor Dapo Abiodun described the successful airlift as a landmark achievement for the state’s aviation and infrastructure development, noting that it reflects the government’s commitment to expanding economic opportunities and improving connectivity.
He added that the direct international operation would not only ease the burden on traditional departure centres such as Lagos and Abuja but also stimulate local economic growth through increased aviation activities.
The Ogun State Muslim Pilgrims Welfare Board assured that adequate arrangements had been put in place to ensure the comfort, safety and proper coordination of all pilgrims throughout their stay in Saudi Arabia.
The 2026 Hajj airlift exercise is being coordinated nationwide by NAHCON, with several states participating in the phased transportation of intending pilgrims to the Holy Land.
The successful take-off from Gateway International Airport is widely seen as a step forward in decentralising Hajj operations in Nigeria while enhancing regional access to international travel.
First Ogun Pilgrims Arrive Saudi Arabia as Gateway Airport Begins Hajj Operations
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News
Atiku Heads to US to Highlight Nigeria’s Security, Economic Crisis
Atiku Heads to US to Highlight Nigeria’s Security, Economic Crisis
Former Vice President Atiku Abubakar has announced plans to travel to the United States to draw international attention to what he describes as Nigeria’s worsening security challenges, deepening economic hardship, and broader governance crisis.
In a statement released on Sunday by his Media Adviser, Paul Ibe, Atiku said the visit will involve engagements with policymakers, institutions, and stakeholders in the U.S. aimed at discussing Nigeria’s democratic and economic situation.
Atiku described Nigeria’s security situation as a “full-blown internal crisis,” warning that insecurity has spread across multiple regions of the country. He cited violence in the North-West and North-East, continued killings in the Middle Belt, and rising cases of kidnapping and criminal activity nationwide, saying the situation now reflects systemic failure rather than isolated incidents.
He added that communities are being overrun, livelihoods destroyed, and citizens left increasingly vulnerable, arguing that the government is struggling to fulfil its primary responsibility of protecting lives and property.
On the economy, the former vice president raised concerns over worsening inflation, currency depreciation, and declining purchasing power, which he said are placing severe pressure on households across the country. He attributed the situation to inconsistent policy direction and lack of a clear economic strategy, warning that the hardship could deepen without urgent intervention.
Atiku also expressed concern about Nigeria’s democratic institutions, warning that declining trust in governance, accountability, and electoral processes could threaten national stability. He stressed the importance of transparency as the country approaches another election cycle, cautioning that any attempt to undermine electoral integrity would have consequences for unity and legitimacy.
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Responding to criticism of his planned engagement in the United States, Atiku rejected claims that his actions amount to inviting foreign interference. He insisted that engaging international partners on Nigeria’s challenges is legitimate, noting that the country’s situation has global implications due to its strategic importance.
He maintained that while Nigerians alone will decide their leadership, the international community also has a legitimate interest in Nigeria’s stability and democratic development, adding that “telling the truth about Nigeria is not unpatriotic.”
Atiku further urged the current administration to urgently reset its priorities, strengthen security structures, and implement clear economic reforms aimed at restoring public trust.
He also called on citizens to remain engaged and hold leaders accountable, stressing that sustainable national progress must be driven by responsible governance and internal commitment to reform.
The development comes amid heightened political activity ahead of the 2027 general elections. Atiku, who served as Vice President from 1999 to 2007, recently aligned with the African Democratic Congress as part of a broader opposition coalition.
However, the party is currently facing internal leadership tensions and factional disputes, reflecting ongoing realignments within Nigeria’s opposition landscape ahead of the next electoral cycle.
Atiku Heads to US to Highlight Nigeria’s Security, Economic Crisis
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Abuja Residents Dump Private Cars as Fuel Prices Soar
Abuja Residents Dump Private Cars as Fuel Prices Soar
The persistent rise in petrol prices is forcing many residents of the Abuja to abandon their private vehicles and embrace public transportation, while a growing number of low-income earners now trek to work to survive worsening economic conditions.
The development comes amid fresh increases in fuel prices across Nigeria following rising global crude oil prices linked to tensions in the Middle East and recent upward adjustments in depot prices by the Dangote Petroleum Refinery and petroleum marketers.
Petrol prices in parts of Abuja and other major cities have climbed to between ₦1,350 and ₦1,400 per litre, significantly increasing transportation and living costs for residents already struggling with inflation and declining purchasing power.
Checks across major roads in the Federal Capital Territory showed a noticeable drop in vehicular traffic, particularly along the usually busy Kubwa expressway between the Suleja and Madalla axis, where congestion has reduced compared to previous months.
Residents say many motorists now reserve their vehicles for emergencies or weekends due to the high cost of fueling.
A civil servant living in Dutse Alhaji, Sholape Kolawole, said she stopped using her car several months ago because her salary could no longer sustain daily fuel expenses.
“It has been stressful using commercial vehicles, but I have no choice since I cannot afford to fuel my car every day to work,” she said.
“To cut costs, I stopped using the car and resolved to taking commercial vehicles to the office and back. It is also expensive, but still cheaper than using my car.”
Commercial transport operators are also feeling the impact of the fuel crisis. A transporter based in Kubwa village, James Obasi, said many operators had scaled down operations because unstable fuel prices were making business unsustainable.
He warned that the situation was hurting small businesses and called for urgent government intervention to stabilise fuel costs and support transport operators.
Another resident, Emmanuel Ajayi, said he had not bought petrol for his vehicle in months and now depends on multiple commercial vehicles daily, a situation he said was affecting his health and productivity.
The rising transport costs have also pushed more residents to trek short and medium distances within the city, especially during morning and evening rush hours, as commuters struggle to cope with increasing fares.
Development expert and customer experience specialist, Dr Aliyu Ilias, described the situation as alarming, noting that many workers now stay home on some days because they cannot afford transportation expenses.
According to him, the hardship is partly connected to instability in the global oil market caused by geopolitical tensions and supply disruptions.
He argued that as an oil-producing nation, Nigeria should ordinarily benefit from rising crude prices, but citizens are yet to feel any direct relief despite reports of increased government oil revenues.
“One practical solution will be for the Federal Government to provide crude oil to local refineries at reduced rates, enabling them to refine and sell petrol at more affordable prices,” he said.
“Such a strategy can help stabilise fuel prices and reduce pressure on transportation and living costs.”
He added that the economic consequences of rising petrol prices were severe, warning that disposable income had almost disappeared for many households as purchasing power continues to weaken.
The National Coordinator of the Human Rights Writers Association of Nigeria, Emmanuel Onwubiko, also described the fuel price increase as an economic shock capable of crippling Nigeria’s informal sector.
He warned that thousands of small businesses that rely heavily on petrol-powered operations could collapse if urgent steps are not taken.
“Barbing salons, welding workshops, small-scale manufacturers, transport operators, and countless petty traders who depend on petrol for daily operations will be forced to shut down,” he said.
“This will trigger a dangerous surge in unemployment, particularly among youths and women, thereby worsening social instability and insecurity.”
Onwubiko called on President Bola Tinubu to urgently intervene by implementing price stabilisation measures and stronger regulatory oversight to protect consumers from exploitative market conditions.
Economic analysts say the latest fuel price crisis once again exposes Nigeria’s vulnerability to fluctuations in global oil prices despite being one of Africa’s largest crude oil producers.
The situation has also reignited debates over domestic refining capacity, fuel subsidy alternatives, and the need for sustainable transportation policies as millions of Nigerians continue to grapple with the rising cost of living.
Abuja Residents Dump Private Cars as Fuel Prices Soar
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