Why Nigeria’s air passenger traffic has failed to return to pre-COVID levels – MD Finchglow Travels

Ezekiel Ikotun, Managing Director of Finchglow Travels, has shed light on the reasons behind the slow growth of air passenger traffic in Nigeria.

According to Ikotun, factors such as increasing foreign exchange rates, high ticket costs, weak passports, travel restrictions, and visa policies have contributed to the decline.

Speaking at Finchglow’s PartnerPlus Connect 13.0 Live event in Protea Hotel, Lagos, themed ‘Navigating Travel Industry Shifts,’ Ikotun noted that most airlines are not adhering to the Bilateral Air Passenger Traffic (BASA) law. Some airlines have reduced ticket inventories to mitigate risks, while others no longer sell tickets in Naira.

“The foreign exchange rate is a major challenge. Emirates, for instance, has stopped selling tickets in Naira due to the risk of trapped funds. Currently, about four airlines only sell tickets in dollars,” Ikotun said.

Ikotun also highlighted the impact of the Central Bank of Nigeria’s policy limiting travel agents to transferring and withdrawing no more than $10,000 worth of ticket sales daily. This restriction has made it difficult for travel agents to operate, especially with United Bank of Africa (UBA) being the selected bank by the International Air Transport Association (IATA) for repatriating airlines’ ticket sales.

“The charges are killing us. If we’re trying to spread it across all banks, it’s unsustainable. Are we making that kind of money? The answer is no,” Ikotun lamented.

Read also: Why planes no longer fall off the skies in Nigeria – Finchglow GMD

Other factors contributing to the slow growth include travel class restrictions, visa requirements, and the weakness of the Nigerian passport, which makes it difficult to obtain visas on arrival for many countries. “You can see the UK just came up with another policy just to toughen how we move. To also get U.S and Schengen appointments for visas are extremely tough,” Ikotun added.

Despite these challenges, Ikotun believes that Nigerians are resourceful and will find ways to adapt. He noted that there’s been an increase in interest in African destinations and local tourism, citing his recent trip to Morocco as an example.

“African countries like Kenya are replicating global tourist experiences, making them attractive alternatives. I think it’s time for Nigeria to develop its own tourism industry,” Ikotun said.

Ikotun emphasized that 75 percent of ticket sales out of Nigeria are done through travel agents, with 30% of those sales being through IATA agents. He highlighted the importance of professionalism in the industry and the need for travel agencies to carve out a niche in the market.

“As a consolidator, we buy in bulk and resell to other travel agencies, enabling them to service their customers. This is the essence of PartnerPlus Connect,” Ikotun explained.

The PartnerPlus Connect event brings agents together to share ideas and improve processes. Ikotun noted that the event has been instrumental in helping Finchglow Travels connect with its customers and improve its services.

“Our goal is to host events every month, with two online and one onsite event. We’ve strategically located events in four regions: Lagos, Port Harcourt, Abuja, and Kano,” Ikotun said.

With over 22 years of experience, Finchglow Travels has established itself as a key player in the Nigerian travel industry, providing essential services to other travel agencies and their customers.