Praisemelody:
Who brought us to this level?

sarutobie:

dude are you some sort of a political cum economic prophet? you always seem to see ahead into the economic terrains of the Nigerian project...

Boeing777pilot:
Arik Air and Med view. Over to you guys.
Come up with a catchy ad : "You don't have to pay in dollars to fly abroad"

Boeing777pilot:
Arik Air and Med view. Over to you guys.
Come up with a catchy ad : "You don't have to pay in dollars to fly abroad"

kevoh:
Na wa o, over 900k just to travel from Nigeria to the US! That's outrageous! Arik Air is not a viable alternative to 900k either

jcross19:
brainwashed spotted. You cancel this!! You cancel your life.

Opoki:

If only we can suggest solution...


An opportunity just present itself for Local Airline to thrive if only they can UP their game and standard. People won't have alternative than to fly them since they collect naira.

What do you think?

kevoh:
Na wa o, over 900k just to travel from Nigeria to the US! That's outrageous! Arik Air is not a viable alternative to 900k either

NavierStokes:


Source:https://businessdayonline.com/2016/04/nigerian-travellers-squeezed-as-foreign-airlines-stop-ticket-sales-in-naira/

Ladies and gentlemen, this change is getting real!!!
We warned about this on here a few months ago. Its a "Venezuela" on our hand, our government should be looking out for everything they did and do the opposite. But sadly they replicate all their policies here, of course we will have the same results.

obailala:


Do you suggest the FG/CBN opens the reserves and pays out the remaining forex in the vault to the foreign airlines to maintain their business?

omohayek:


I think you should read up a bit on how the international flight business works. Even if there were domestic carriers with the tens of billions of dollars of financing to afford fleets comparable to those of British Airways, Cathay Pacific, Etihad, etc. (and there are no such Nigerian companies), and it were possible for Boeing and Airbus to magically deliver the planes these businesses need in the space of a few weeks or months (again, impossible, as orders take several years to complete), these domestic flights you mention would still have to negotiate landing rights individually with all of the countries they're trying to serve, and then cover the gaps in their flights by making partnership agreements with several other carriers (e.g. Star Alliance, Sky Team, One World): this again would take years of discussion, and as the newest and weakest member of the new alliance, this Nigerian carrier would have to be able to afford to financially compensate the existing members who have broader flight networks, bigger fleets and stronger brands. Who would lend all of this money to (or buy equity in) a company whose home base is in a country with an FX crisis caused by inept leadership?

In short, the international airline business, like so many others Nigerians imagine domestic businesses can magically replace, is not a business even well-funded businesses in stable countries jump into, let alone companies based in a nation led by a man who doesn't understand even the basics of supply and demand.

NavierStokes:
People will have to start paying for tickets from abroad, with the money never entering our system. God help us.

Opoki:

Spot on bro. Those are very salient points. We're good at managing situation and i'm sure we'll manage this.

ASL33:
Yes good in managing situation like boko, fulani's, petrol scarcity. Hope we don't manage this like the mentioned.

porka:
Let them take yuan to 'reduce pressure' on dollar demand.

Or ban foreign travel, it's corruption. We must diversify our travels.

What is Emefiele waiting for?

obailala:
@NavierStokes
I'm sure you are an intelligent person, can you please suggest what you think the government should do about this knowing fully well this caused by a forex shortage?

Do you suggest the FG/CBN opens the reserves and pays out the remaining forex in the vault to the foreign airlines to maintain their business?

sarutobie:

dude are you some sort of a political cum economic prophet? you always seem to see ahead into the economic terrains of the Nigerian project...

dandollar1:
always looking forward to reading his posts. The situation of the country has always been accurate with his predictions so far. Wonder how he does it.

If he open church, he go sell o.

onatisi:
how will they service their external repayment?
How will they pay their foreign expatriate workers ?
How will they buy spare parts from abroad?
What about landing fees and charges they have to pay when they land in foreign countries

NavierStokes:


You make it seem like if the currency controls are out out of place we will have zero inflows and all outflows. The government should jettison this idea of attempting to fix the currency. allow the market decide (float the currency) and watch our reserves relatively remain at the current level, we have too little forex to want to fix the price of our currency . The same thing is happening in the petroleum downstream sector.

You can not control the value of the currency, capital flows as well as the monetary policy. It is a rule I can't recall the name. Will search and update as soon as I do.