Foreign Airlines Lost N6.4bn to Naira Devaluation – Thisday

The Country Manager of British Airways, Kola Olayinka has disclosed that foreign airlines operating in Nigeria lost N6.4billion in the N157.6 billion ($800) of their revenues trapped in the Central Bank of Nigeria (CBN) when the Naira was devalued from N197 to N280 by the apex regulator.

The BA Country Manager explained that the total amount of money trapped in CBN before the devaluation was $800 million and for every $1million the airlines lost N80million.

Olayinka made this known on Wednesday during the Aviation Round Table (ART) Breakfast Meeting in Lagos. He explained that the fares Nigerians pay for international destinations have increased because more naira is exchanged for dollars, but passengers still pay the same fare in dollar denomination.

He said that the economic downturn and scarcity of the dollar are bringing uncertainties in the Nigerian economy and have affected every business done in Nigeria and in the entire economy.

“Dollar scarcity is bringing about uncertainties to all businesses. $800m was in our banks that needed to be transferred. We were selling for N197, when it went up to N285. For every $I million, we lost N80 million,” he said.