Emirates has announced it will suspend all flights to and from Nigeria effective 1 September 2022, citing an inability to repatriate an estimated $85 million in revenue trapped within the country due to a persistent shortage of foreign exchange.
The Dubai-based carrier said in a statement that it had made no progress in efforts to initiate dialogue with the relevant Nigerian authorities to secure the urgent release of its funds, and that it had therefore taken the difficult decision to suspend operations to limit further losses and rising operational costs accumulating in the market.
A Wider Currency Problem
The suspension reflects a broader difficulty facing international carriers operating in Nigeria, where restrictions on access to foreign currency for imports and profit repatriation have made it increasingly difficult for airlines to convert local naira revenue into US dollars. The International Air Transport Association (IATA) said earlier in the year that Nigeria was withholding an estimated $450 million in revenue owed to international carriers operating in the country.
Nigeria depends heavily on oil exports for foreign exchange earnings, but production shortfalls linked to pipeline theft and years of underinvestment have left the country chronically short of the dollars needed to meet demand from businesses, including foreign airlines seeking to repatriate ticket sales revenue.
Industry Reaction
Emirates' decision to suspend one of the biggest international routes into Nigeria was seen as a significant blow to the country's international connectivity and a warning sign for other foreign carriers grappling with the same currency constraints. Nigeria's Federal Ministry of Aviation did not immediately respond to requests for comment on the suspension at the time.
The development added to a difficult year for Nigeria's aviation sector, which had already weathered a nationwide domestic flight suspension over jet fuel costs and the indefinite grounding of Dana Air earlier in the year.
