Nigerians suspend travel to US, Europe as economy tickets hit N2.2m

Lately, Nigerians have been forced to put a halt to their travel arrangements to the United States and Europe due to the surge in ticket prices. This significant rise is a direct consequence of the steep exchange rate.

According to BusinessDay's inquiry, the price of a plane ticket in economy class from Lagos to London and Lagos to France, as well as various European nations, has increased from approximately N1.5 million a month ago to an average range of N1.9 million to N2.2 million, depending on the airline chosen.

For example, if you are planning a trip from Lagos to France and want to fly economy class with British Airways, the ticket will set you back around $2,500. Considering the current exchange rate of N770 per dollar, this would amount to approximately N1.92 million.

A one-way economy class ticket from Lagos to London on British Airways is priced at approximately $2,800, which equals about N2.15 million in Nigerian currency.

The economy class ticket from Lagos to London on Qatar Airways is priced at approximately $2,900, which is equivalent to around N2.23 million.

Furthermore, a standard ticket for a flight from Lagos to the United States, which was valued at approximately N1.7 million last month, is currently ranging from N2.2 million to N2.6 million in price.

A single plane ticket from Lagos to the United States on Delta Airlines has a price tag of approximately 2.4 million Naira. On the other hand, traveling the same route with Lufthansa or Qatar Airways would be around 2.6 million Naira.

A premium airline seat from Lagos to London, Lagos to France, and various European nations previously priced at approximately N2 million, now has an average of N2.9m to N3.4 million.

A first-class ticket from Lagos to London on Lufthansa Airline has an approximate price of N2.9 million, while on Qatar Airways, it amounts to around N3.4 million.

Additionally, the price of a Business class ticket from Lagos to the United States, which had an average cost of N2.4 million one month ago, has now escalated to approximately N4.9 million if you book with Qatar Airways and N6.9 million if you choose Ethiopian airlines. Interestingly, Air Maroc seems to offer the most affordable option, with a ticket price of around N2.4 million for the same route.

The prices of air tickets from Nigeria to different places have experienced a significant increase as the exchange rate for ticket costs surpassed N760/$.

The occurrence happened a few days after the Central Bank of Nigeria (CBN) allowed the naira to fluctuate in value and instructed commercial banks to offer foreign currency at rates determined by the market.

The Central Bank of Nigeria (CBN) has issued a directive to merge all forex portals into the Investors & Exporters Window.

In the aftermath of the decision, the exchange rate on the International Air Transport Association (IATA) platform has shown volatility, moving from 663.04 dollars per Nigerian Naira to its current value of 770 Naira per dollar.

Nigerian jet-setters promptly adjusted their travel arrangements, putting their plans to explore Europe and the United States on hold due to the surge.

"I have never seen tickets sold at such high prices in Nigeria before. How can I purchase a ticket from Lagos to London for over N2 million? This increase is not just a small rise, it is excessive and I'm certain that most regular travelers cannot afford this during a time of economic decline," expressed Philip Onuh in an interview with BusinessDay.

Onuh mentioned that he intended to travel to New York next month to meet his family, but unfortunately, he had to put his travel arrangements on hold due to the increase in ticket prices.

"I couldn't manage to cover the expenses of bringing my family to Nigeria for the summer since airlines had increased their prices on their websites, resulting in higher fare costs. Consequently, I decided to change my plans and visit them instead to minimize travel expenditure. Much to my astonishment, when I was prepared to book my ticket, I discovered that the prices had skyrocketed to N2.4 million in the United States. Therefore, I had no choice but to postpone my travel plans for the time being," he clarified.

John Effiong, another adventurer informed BusinessDay that he intended to journey to France with his loved ones during his yearly break in a couple of months, but unfortunately had to abandon these plans due to the unaffordable increase in airfare expenses.

Contrarily, Effiong expressed his intention to visit Egypt as an alternative since the expenses for the trip to Egypt are approximately three times cheaper compared to what he would have paid if he had chosen to travel to France.

"My travel consultant suggested considering Egypt as an alternative rather than canceling our travel arrangements since there are still affordable rates available for this North African destination, and their visa regulations are pleasantly accommodating."

"With a Schengen, UK, US, or Canada visa, individuals have the opportunity to visit Egypt and obtain their visa upon arrival. All members of my family possess Schengen visas, and this conveniently simplifies matters for us. We save on travel expenses, and the convenience of obtaining the visa adds to its appeal," he expressed.

In the past year, international airlines in Nigeria have restricted the availability of affordable tickets, reserving expensive tickets to be sold exclusively in the local currency. Meanwhile, the low-cost tickets displayed on the websites of many airlines can only be purchased using credit cards issued in dollars.

They did this in an attempt to mitigate the impact of their locked funds in Nigeria, which continued to increase.

According to BusinessDay's findings, airlines have slowly made available previously unavailable low-priced tickets, as the Central Bank of Nigeria has released their withheld funds in small amounts. However, despite this development, the websites still predominantly display a larger number of expensive tickets, resulting in high ticket prices.

According to Susan Akporiaye, the head of NANTA, the decline in summer trips has been observed ever since limitations were imposed on the availability of flight tickets on airline websites.

Akporiaye, on the other hand, pointed out that the recent policy regarding the dollar rate has actually exacerbated the predicament, as ticket prices have skyrocketed to such an extent that even business travels are now being impacted.

"This is not the typical summer we are accustomed to. We faced a similar situation last summer due to limitations on inventory. Surprisingly, the inventories have not been made available yet. Consequently, despite the unification of the dollar rate, there is no improvement and the situation has worsened. Previously, economy class tickets from Lagos to the United States cost around N1.9 million when the exchange rate was around N460 to a dollar. However, with the current exchange rate exceeding N760 to a dollar, ticket prices have skyrocketed to a range of N2.5 million to N3.2 million."

That's the reason why we are engaging in conversations with the airlines. Currently, the exchange rate is remarkably high. In order to avoid burdening passengers, it would be advantageous for airlines to make available the reduced ticket prices. By offering lower fares, individuals would have the opportunity to obtain tickets priced at N700,000, at the very least according to the NANTA president.

According to her, the recently implemented exchange rate policy has further diminished the number of tickets being sold.

In the past, the naira platform used to have the most expensive prices, while the dollar platform still offered cheaper fares. Therefore, individuals could easily obtain dollars from the black market. However, the situation has changed, and now everyone is being affected.

Therefore, purchasing tickets in either dollars or naira holds little distinction now. This policy has brought about unity within the entire system. Regardless of the currency used, purchasing tickets yields the same outcome. In order to support the travel agency community, airlines have also introduced a dollar platform. This means that individuals no longer need to rely solely on online services, as we are now able to assist them directly," expressed Akporiaye.

She mentioned that previously, travel agents relied on businesses as they had the ability to cover the expensive travel expenses. However, nowadays, even the corporate sector is canceling their travel arrangements.

Discussing trips to other African nations, the NANTA leader mentioned that Nigerians are now starting to broaden their perspectives on discovering various locations within Africa.

Despite the challenging visa situation in South Africa, individuals continue to visit the country, and the newly introduced online visa platform serves as a valuable tool for simplifying the application process and facilitating travel arrangements.

Additional African nations that are now allowing entry include Namibia, Kenya, and Botswana. Egypt took advantage of the situation when Dubai halted flights to Nigeria and implemented creative changes to their visa regulations. This proved beneficial as Nigeria sought alternative travel options to Egypt. Previously, the visa process for Egypt posed challenges, with applicants waiting for nearly three months. Thankfully, this issue has been resolved, and the wait time has significantly reduced.

"Now, Egypt offers visa on arrival to individuals with valid visas from Schengen, UK, US, or Canada. If you possess any of these visas, there is no requirement to visit the embassy. Simply board the plane and obtain your visa-on-arrival for a fee of 50 dollars. This change has greatly facilitated travel. As a result, some travelers heading to the US now choose to make a brief stopover in Cairo to enjoy themselves before continuing to the US, thanks to the convenience of visa on arrival," she elaborated.

Additionally, she pointed out that Rwanda is particularly convenient for Nigerians since a visa is not necessary. This has led to an increasing number of Nigerians taking advantage of this opportunity to engage in business activities and enjoy vacations in Rwanda.

Most African airlines continue to offer cheaper ticket prices, according to her statement.