Managing Director of Dees Travels and Tours Limited, Mr Daisi Olotu, has attributed the delay by the government in releasing funds for the repatriation of the earnings of foreign airlines to the ongoing degeneration in the aviation sector.

He said this is evident in skyrocketing fares and airlines threat to reduce or outrightly cease operations in Nigeria and linked this to why Nigerians now prefer to travel to other African countries and even non-African countries to purchase tickets at cheaper rates.

Olotu said unfortunately, the downstream sector like travel agencies and service and hospitality establishments bear the brunt of this issue and face imminent closure as a result of the loss of businesses, warning that if left unaddressed, this could result in a widespread economic fallout.

He said, “The aviation sector is a crucial revenue generator for any country significantly contributing to its economic growth. The movement of persons to and from Nigeria aids in the expansion of local businesses, boosting tourism and enhancing foreign direct investment. These result in the increase of government revenue through taxes, rates and other avenues that improve our nation’s economic standing.”

Referring to a data publication from Statistica released in October 2021, he mentioned how Nigeria has over 5,000 travel agencies, saying, “Imagine the number of Nigerians who will be out of jobs as a result, adding to the already overpopulated labour market.

“Additionally, the government stands to lose substantial revenue from taxes paid by these agencies, adding to the economic crises the country is facing.

“It is against this backdrop that we appeal to the Nigerian government to find ways to resolve this problem. The release of $61 million falls short of the $812 million trapped funds. Immediate action is crucial to prevent further deterioration of the aviation industry and its alarming effect on the country’s economy.”