Arguments for adopting a naira-exclusive policy for foreign air travel bookings

Nigeria has long been a major player in the global aviation industry, offering one of the most profitable hubs for international airlines in Africa, but a concerning trend has emerged in the country's hangars, with some foreign carriers insisting on pricing and selling tickets solely in US Dollars.

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This practice has become a direct challenge to Nigeria's monetary sovereignty and the Central Bank of Nigeria's authority, particularly in the second quarter of 2026, moving beyond a temporary measure to a blatant disregard for the country's monetary laws.

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Historically, the argument for dollar-denominated fares was based on the "trapped funds" crisis, especially the experience in 2023, but this narrative has lost its relevance, as the Central Bank of Nigeria has cleared the $850 million backlog and established more predictable repatriation channels.

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The continued rejection of the Naira for flights within Nigeria's borders is no longer a necessary tactic, but rather a deliberate choice that undermines the country's sovereignty and treats the Naira as a mere suggestion, which is unacceptable.

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When airlines demand dollars from passengers in Lagos or Abuja, they impose the risk of exchange rate volatility directly on the Nigerian consumer, creating a "shadow inflation" that makes international travel a moving target for civil servants, entrepreneurs, and students.

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This practice also creates a distorted market where local carriers, bound by law to trade in Naira, are forced to compete on an uneven playing field against global giants holding hard currency reserves, a situation that would not be tolerated in robust economies like the United Kingdom, South Africa, or Kenya.

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The National Association of Nigeria Travel Agencies has rightly described this practice as "disrespectful," and their criticism is justified, as allowing the exclusion of the Naira diminishes Nigeria's standing in the global financial ecosystem.

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The remedy for this situation requires more than just "encouragement," and the Nigerian Civil Aviation Authority must shift from oversight to enforcement, making compliance with local currency laws a non-negotiable condition for market access.

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Airlines that use Nigeria's skies and terminals must be required to use the local currency, and the government must ensure that this requirement is met with efficiency, guaranteeing seamless and transparent access to foreign exchange for repatriation once the Naira is collected.

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Pricing in Naira is not about protectionism, but rather about policy consistency, and it is time to put an end to the era of dollar-only ticket sales and ensure that the Naira remains the only legal tender in Nigeria's skies.