Dubai’s Emirates has announced plans to suspend flights to Nigeria from 1st September, seeking to limit further losses and impact on its operational costs that continue to accumulate in the market, citing Nigeria’s inability to repatriate funds.
Nigeria has restricted access to foreign currency for imports and for investors seeking to repatriate their profits due to a shortage of dollars.
The International Air Transport Association said in June Nigeria was withholding $450 million in revenue that international carriers operating in the country had earned.
Emirates had earlier sent a letter to the government saying it could cut flights to Lagos this month because it could not get $85 million stuck in the country as of July, a figure that had been rising by $10 million per month.
Nigeria gets about 90 percent of its foreign exchange from oil, but is struggling to produce due to pipeline theft and years of under-investment.
News Source: Kenyan Wallstreet. All rights reserved
