Naira weakness alone accounts for nearly half of the decline in travel revenue
Against the backdrop of sharp Naira depreciation and inflationary pressures, Nigerians cut spending on foreign air travel by 30% to $2.66 billion in 2024. This represents a $1.12 billion drop from 2022’s $3.78 billion, according to Central Bank of Nigeria data.
Experts blamed the fall on the 244% Naira depreciation to N1,553.73/$ and inflation soaring to 34.8% in 2024.
“There is reduced disposable income,” said Captain Ado Sanusi, CEO of Aero Contractors. “Persisting inflation and currency depreciation have eroded the purchasing class of the middle class.”
Funmi Adebowale of Parthian Partners noted: “Naira weakness alone accounts for nearly half of the decline in travel revenue.”
Tight visa policies and foreign airlines’ dollar-based ticket pricing further worsened the situation.
Chris Aligbe, CEO of Belujane Konzult, added: “People are making efforts to use their incomes to feed themselves… they do not have the disposable income for flight.”