Dwindling Economy: Two International Airlines Pull Out of Nigeria

 

BBC Africa has exclusively reported that two international airlines are pulling out of Nigeria as the country grapples with its worst economic crisis in decades.

 

Spanish airline, Iberia cancelled all its flights last month and the US carrier, United Airlines says it will suspend its daily service at the end of June.

 

The carriers say falling demand for flights and currency restrictions are behind their decisions.

 

This is the latest example of the economic crisis affecting Africa’s largest economy as the plunge in global oil prices has cut Nigeria’s growth and led to a shortage of foreign currency reserves.

 

Recall that last year, the federal government introduced strict currency controls to ensure that foreign reserves were available for what it deemed priority sectors – which did not include the airlines.

 

It is now reported that up to $1bn (£691m) of the industry’s earnings may be trapped in the country.

 

Several other international airlines including British airways and Emirates, will continue flying to Nigeria.