The Group Managing Director, Finchglow Holdings Limited, Bankole Bernard, says the floating of the exchange market by the President Bola Tinubu-led administration, among other new policies, can’t hold back ticket proceeds due to foreign airlines.
He added that the floating of the exchange market had brought stability and predictability to the economy and indigenous businesses.
Bernard made these observations on Thursday in Lagos during the review of 2024 activities and a preview of 2025 in the Nigerian aviation industry with aviation correspondents.
He also observed that the inability of Nigerian airlines to be in the International Air Transport Association’s Clearing House was limiting their growth and expansion drive.
Recall that the United Arab Emirates flag carrier suspended its flight services to Nigeria following trapping of its funds in the country.
Close to $800m in ticket sales of the foreign airlines operating in Nigeria were trapped, while Emirates severed its relationship with the country after its funds in Nigeria’s coffers swelled to $85m.
Nigeria had, however, cleared the debt in March 2024, after Tinubu met with the United Arab Emirates President, Sheikh Mohamed bin Zayed Al Nahyan.
Explaining his position, Bernard said, “2024 started off on a very tough note. This is so because the airline’s trapped funds were still there. Also, as inflation went to all-time high figures, the cost of tickets became unbearable, and airlines started restricting inventories, which created a lot of problems.
“I can tell you for a fact that the issue of airline-trapped funds can never come up again in this country. That is gone for good. It has now become an eye-opener to everyone that we really don’t need to tie our hands and legs and expect the Central Bank of Nigeria to provide foreign exchange. Let the market be free for all. Anywhere you can get your money, please go ahead.
“In that process, we started experiencing stability. That stability has now brought growth in business for us. The growth in business it brought for us is what is still making us remain in business to date and has given us room to project because we would have been in a dilemma of what 2025 would be.“But the exchange rate has become stable to a very large extent. The exchange rate cannot go to N1,900 again, except some people are manipulating it. The only thing that we will experience is that it will continue to drop to take the natural value that it should be. Once there is stability, it means as a business we can plan, and that is what has happened to us.”
Emphasising the need for Nigerian airlines to be in the IATA Clearing House to remain in business, “Any airline that wants to survive and grow should not limit itself to a point-to-point operation. The idea of ‘I can do it alone’ is what is killing most of our local airlines. There is nothing stopping me from selling my tickets beyond point A to point B.”
