The Nigerian currency Naira posting a massive loss against the United States of America Dollars has seen plenty Businesses in shambles as many importable goods prices skyrockets.
Many business owners are currently bemoaning the current high exchange rate prevailing in African most populous country. The prices of goods and services are currently on the high side as many households prepare for the ever busy Yuletide season.
The pound is about N506, a dollar is N380 and Euro is N453 at the Central Bank of Nigeria (CBN) official exchange rate.
At the parallel markets where the Bureaux De Change (BDCs) sell the currencies, they have continued to go high while the naira continues a free fall in value.
While the pound exchanges of over N635, Euro at N580, the dollar had exchanged for about N500 last weekend, it continued on a free-fall to about N505/$1 on Monday in some markets and has remained at over N490 mid-week.
Airfare operators in Anguish.
Major airlines operators are in a difficult situation over the tightening access to foreign exchange. The CBN dollar restriction policy has made it difficult for them to transact businesses and meet their costs.
Major airline business is largely dollar-denominated for the purchase of spare parts for aircraft, payment of aircraft lease, aviation fuel, among others.
Recently the CBN directives to banks to stop giving dollars for airlines have left them short of necessary cash to fund their spare parts, leases rentals, flight crew training and sundry expenses requiring dollars.
An airline operator said the current policy has made it difficult to pay for aircraft parts that were sent abroad for maintenance.
“This is a serious issue of concern, which we are hoping and praying would be addressed as soon as possible to save this sector. This is a major safety issue because how do you operate safely when you don’t have access to the foreign exchange to do maintenance, pay for lease, pay for the training of our crew abroad. I am just wondering.
“We want to appeal to the Central Bank of Nigeria (CBN) to listen to our cries and save this industry for collapse,” an official of the aviation sector said.
The operators equally listed high-interest rate on loans, multiple taxations and multiple entry points granted foreign airlines among others as major challenges affecting them.
However, the Chairman, House of Representatives Committee on Aviation, Nnolim Nnaji, yesterday raised alarm over the high cost of airfare. The law maker is of opinion that the recent aviation policies should be reviewed to reduce the untold hardship amongst the citizenry and to save the aviation sector from massive regression.