NANTA Challenges Foreign Airlines Over Dollar-Only Sales

The National Association of Nigeria Travel Agencies (NANTA) has relaunched its advocacy against the practice of dollar-only ticket sales and city sales by foreign carriers operating in Nigeria. NANTA President, Dr. Yinka Folami, stated that these practices disregard national sovereignty and violate the economic regulations established by the Nigeria Civil Aviation Authority (NCAA).

NCAA Regulatory Framework and Compliance

NANTA’s position is anchored in the Part 18 Air Transport Economic Regulations of the NCAA, specifically sections 18.6.1.1(c) and (d). These regulations mandate that foreign airlines operating scheduled international services into and out of Nigeria are prohibited from opening city sales offices or outlets outside of designated aerodromes. Instead, carriers are expected to utilize local General Sales Agents (GSAs) or airport-based ticketing desks.

Folami noted that while some airlines have complied by shutting down city sales or appointing GSAs, a small segment of carriers continues to enforce dollar-only transactions. According to NANTA, approximately three of the more than 30 foreign airlines currently operating in the country—representing about 10 per cent of the market—still mandate payment in foreign currency.

Impact on Local Travel Agencies

This policy significantly impacts the local travel trade, particularly small and medium-sized enterprises. NANTA represents approximately 4,000 travel agencies, of which 1,621 hold official International Air Transport Association (IATA) certification. Among these, 1,274 members operate under the IATA GoLite Accreditation model. Because GoLite billing settlement plan wallets do not permit dollar transactions, the dollar-only sales policy effectively excludes 75 per cent of NANTA's membership from trading directly with the enforcing airlines.

Economic Context and Market Shifts

Industry stakeholders note that the practice of dollar-only sales originated as a risk-mitigation strategy during periods of severe foreign exchange illiquidity and trapped revenues. A notable historical precedent occurred in August 2022, when carriers such as Emirates suspended flights due to $85 million in trapped funds. However, NANTA argues that the current stability of the naira and improved foreign exchange liquidity have removed the justification for such restrictive policies.

Etihad Airways and the GSA Model

As foreign carriers adjust their local distribution models, the appointment of Nigerian GSAs has become a primary compliance strategy. APG Nigeria serves as a prominent example, facilitating market access for major international carriers. Folami specifically commended Etihad Airways for its decision to appoint a Nigerian GSA ahead of its planned return to the Nigerian market on March 18, 2027.

Why This Matters for the Nigerian Aviation Market

For the broader Nigerian aviation sector, this development signals a transition toward greater market inclusion. The shift away from direct city sales offices toward the GSA model aligns foreign operations with the existing regulatory framework while supporting the viability of local travel agencies. As the economy stabilizes, the alignment of foreign airline commercial practices with local currency regulations remains a critical factor for maintaining market goodwill and ensuring the participation of the domestic SME segment in the global aviation value chain.