In July 2016, the Minister of Finance, Kemi Adeosun , announced that Nigeria’s economy was technically in recession. This official statement came on the heels of a similar statement credited to the Central Bank of Nigeria Governor, Mr. Godwin Emefiele who admitted that the economy was in stagflation. These revelations no doubt point to the fact that all is not well with Nigeria’s economy.

For many stakeholders in the transportation sector, these official statements should have come earlier because Forex scarcity , occasioned by the fall in crude oil prices has strangulated the local economy making many airlines struggle while others have wound up.

As the current hardship persists in the wake of dwindling local economy, airlines and transporters are put in a difficult position. They complain of low patronage as our investigations reveal. A visit to Murtala Mohammed International Airport, Lagos indicates that there’s general reduction in activities.

Our source who spoke on the condition of anonymity said: “Most of our planes now depart from here and return from other countries half of what they used to carry.” According to the industry source, “Why the aviation sector is experiencing low patronage is that most people who patronize airlines are rich people, middle class income earners, government officials, and officials of multinational companies. But now that these people are complaining there’s no money, it is taking a heavy toll on us. Many of these comfortable people have stopped embarking on lavish abroad trips and shopping.”

Further investigations by Nigeriatravelblog.com revealed that not only local carriers are feeling the economic downturn as many of their foreign counterparts have concluded arrangement to pull out of Nigeria owing to FX crisis while others have already withdrawn their services from Nigeria. It would be recalled that US carrier United Airlines on 30th June ended daily flights between Houston, Texas and Nigeria’s commercial capital, Lagos. In the similar vein, Spanish airline Iberia had withdrawn its services to Nigerian travellers a month before.

The continuous withdrawal of these giants from Nigeria’s airspace means job losses, reduced government earning (in taxes), and limited travellers’ choices. International Airport Transport Association (IATA) released a statement in May, 2016 saying that “The inability of airlines to access forex in Africa’s largest economy, if not resolved, will affect air travels within and outside Nigeria – and if that happens, it will undermine Nigeria’s position as West Africa aviation hub.” “Furthermore, as a result of foreign exchange restrictions imposed by Federal Government, foreign airlines have not been able to repatriate over $600m in ticket sales” IATA says.

This tale of woes isn’t just narrated by airline operators in the country , as the impact is also felt among major commercial bus operators in Nigeria. A visit to the ever-busy Jibowu motor park in Lagos on Sunday revealed a general drop in hustle and bustle which characterized the area. From God Is Good Motors to Chisco, from E. Ekeson to The Young Shall Grow, there is general drop in activities. A ticketer with one of the major transporters who identified himself as Emeka opined: “Everybody is crying no money – no money! And if you check yourself too you will see they are right. Our patronage has really dropped because there is no money now, but we are hoping things will get better before the end of the year.”

As travellers continue to justify the need to travel in the light of persistent economic hardship, it is hoped that the economy would improve in the near future. Federal Government of Nigeria had earlier promised to diversify its crude oil-revenue financed economy as a way of increasing government earnings and stimulating the economy, but apparently, much hasn’t been done in that area. As optimistic Nigerians await the government to revamp the local economy, many others have remained despondent saying that the government lacks direction and focus as Nigerians have witnessed policy somersault in recent times.

Well, no matter the side of the divide you are on, one thing is crystal clear – Nigeria’s economy is in recession and this is rearing its ugly head in the transportation sector of the economy – discouraging fun seekers from travelling. Official figures had it that Nigeria’s economy contracted by 0.4% in the first quarter of this year.

From the foregoing, there’s a connection between the economy and travel around Nigeria. As the country’s apex bank, the CBN, has introduced flexibility into the foreign exchange market as a way of reviving the ailing economy, Nigeriatravelblog.com will continue to monitor the (micro and macro) economy as well as report its multiplier effect on travel business in Nigeria in the coming days.

beautiful232:
My transportation to work monthly is more than my salary



Which way

dannyben5:
Am weeping for nigeria....who get handki abeg...

dannyben5:
Am wiping for nigeria....who get handki abeg...

SycophanticGoat:



Sorry hun, by 2019, ensure you don't feel funky, lying indoors while we file out to vote. Join us and vote the dead brained dullard out...

SycophanticGoat:



Sorry hun, by 2019, ensure you don't feel funky, lying indoors while we file out to vote. Join us and vote the dead brained dullard out...

EmekaBlue:
Impeach Impeach Impeach una know who




D chief certified dullard himself...Mallam Buhari

tno4real:


Mr man who do u plan to vote come 2019? U better think well

2dugged:
I disagree, so you want zombies to now say if we had only been more patient apc would have turned naija to London?,you want them to say what Nigeria was experiencing was the storm before the calm and all we needed was a little more patience? majority of Nigerians voted for change, and change we will all get even people like me who knew the promises were too go to be true