Market News
Naira Conundrum: Unpacking Nigeria’s soaring airfare - NIGERIN TRIBUNE
A 47-year-old Nigeria Airways flight promotion recently stumbled upon, sparked a crucial conversation about the state of the Nigerian economy, with many pointing to the naira as the root cause of the country’s economic woes.
A closer look at the changes in flight ticket prices from Lagos to London between 1978 and 2025 revealed a stark reality.
In 1978, the exchange rate was $1 to N0.6, whereas today it’s $1 to N1500. It is therefore expected that the significant depreciation should have far-reaching implications on the ailing economy.
Let’s consider the Lagos/London airfare in 1978, which was N527. Adjusting for the exchange rate, that’s equivalent to approximately $878.33. This undervaluation has severe consequences for the economy, making imports expensive and stifling local production.
The country’s reliance on imports has led to a decline in domestic manufacturing, with many industries shutting down or operating below capacity.
A glance at Nigeria’s industrial landscape reveals a stark reality. Once a hub for local production, the country has shifted to importation, shutting down residual assembly plants, battery plants, tyre industries, and other manufacturing facilities.
The decline of industries like cocoa, rubber, groundnut, and cotton has further exacerbated the situation.
Our country’s agricultural sector, which was once a major foreign exchange earner, has also suffered due to lack of investment and support.
