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Air Travel Hit by Unfair Trade in Nigeria

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By Samuel Abimbola

Foreign flight ticket sales harm Nigeria's economy and travel agents' revenue.

The National Association of Nigeria Travel Agencies (NANTA) and the Federal Competition & Consumer Protection Commission (FCCPC) are both worried about the practice of purchasing tickets abroad for flights originating in Nigeria. Tickets issued abroad are termed as either Sold Outside Ticket Outside (SOTO) or Sold Outside and Ticketed Inside (SOTI), even though foreign airlines have made their discounted ticket allocations available in the country. Both foreign and domestic airlines in Nigeria are worried about the increasing number of ticket sales points outside airports.

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This shift has damaged travel agents’ businesses in the country, causing concern among all involved. The foreign Airline inventory trading across borders was likened to a formidable monster that must be confronted head-on and eradicated for the betterment of the nation’s economy. Several people have stated that the situation has impacted the Revenue agents and the country should receive in taxes, jeopardising numerous agencies’ survival. The type of ticket purchased for a flight can significantly impact the price of fares, whether a SOTO, SOTI, or SITI ticket.

Global agencies sell tickets and accept foreign currency from clients.

Tickets purchased outside the country of origin will be subject to extra charges according to specific fare Construction rules. An illustration of this is when a passenger from the UK buys their ticket in the UK but flies from New York to Los Angeles, resulting in a SOTO ticket. To indicate whether these activities are indoors or outdoors, tickets could also be coded as SITI, SITO, or SOTI, depending on where they are situated in relation to where the traveller started.

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As per a travel professional interviewed by the media, foreign agencies tend to issue tickets starting in the country, accept payment in the local currency (naira), and receive dollars from their customers. The Acting Vice Chairman of the Federal Competition & Consumer Protection Commission Lagos, Alhaji Adamu Abdullahi, expressed concern about the escalating trend, emphasising that it poses a serious economic threat to the country. He stressed the importance of promptly addressing this issue to prevent further harm to the Nigerian travelling public and the livelihood of local journey professionals.

FCCPC vows to address challenges in travel industry to protect local jobs.

Abdullahi also highlighted the risk of job losses and increased capital flight if the situation is not addressed effectively. During a visit to his office in Abuja by the President and Executive Council of NANTA, the FCCPC boss promised to take decisive action against challenges in the journey industry and bring order to the chaotic system, reassuring the trip Trade group members. He further expressed concern about the constant delays and cancellations of flights, which have diminished the pleasure of voyaging in the country.

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In this endeavour, they will diligently examine and rectify various violations in the Aviation industry, precisely the disregard shown by airline operators towards passengers. Cancelling or delaying flights without proper communication with passengers is disheartening. Operators must provide proof of operational challenges if flights must be cancelled or delayed for an extended period. Abdullahi praised NANTA’s leadership for its forward-thinking approach to collaborating with FCCPC to promote fairness and justice in the aviation industry across the country.

Related Article: Oversight Committee to investigate airlines

Lastly, the Commission’s plan to establish a technical team to create a Memorandum of Understanding (MoU) with NANTA reflects their commitment to maintaining a strong partnership. By working closely with NANTA, the FCCPC aims to support the travel industry’s growth and ensure a reliable and efficient business environment. They commend NANTA for their expertise in overseeing the sector and are dedicated to helping them uphold international standards and industry regulations. This collaboration will benefit both parties and contribute to the industry’s success.

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