By Prince Okafor

International passengers might be forced to pay more for their travels, following the rise of airlines’ foreign exchange rates.

Vanguard gathered that the airlines’ Rate of Exchange, RoE, rose significantly from N582 per dollar to N610 per dollar.

The development came against the backdrop of the rising foreign airlines’ trapped funds which have surpassed $700m.

It was also gathered that the rate has risen twice in two months. In March 2023, the rate was increased from N460/$ to N551/$ and also in April to N610/$.

Confirming the development, the President of the National Association of Nigerian Travel Agencies (NANTA), Mrs Susan Akporiaye, said: “The implication is that Airfares would go up again.

“Airfare that was N1.5m yesterday is now N1.7m and a report reaching us from IATA indicated that the Airlines are trying to match the rate that CBN is selling to them. CBN is not selling to them at the official rate.”

Also, a travel agent who preferred anonymity stated that the airlines already communicated the development to their trade partners.

“I got a mail from one of the airlines that as from today, flight reservations should be made using the new rate.

“The implication is that many classes of tickets would be seriously affected as airlines which recently reinstated some lower inventories may remove them again.”

In a chat with an Aviation consultant, Babatunde Adeniji, he lamented that the rate changes frequently because of the trapped funds.

“It changes up and down but doesn’t impact the block funds situation. What it was meant to achieve is that the rate at which you sold should be a safe rate for you. It is like a floating exchange rate. But the same CBN that is fixing the exchange rate, when it is time to make remittances, you might not get the same rate.

“The big problem with blocked funds is that when I am ready to get my money, the only rate available to me is the black market rate.”