Africa Daily - Why is Nigeria’s economy ‘doing a dance’?
Download Why is Nigeria’s economy ‘doing a dance’?
Last month Emirates Airlines announced it was halting flights to Nigeria – saying it was owed millions of dollars. The plight of passengers suddenly forced to find creative and expensive ways to travel thousands of miles grabbed the world’s attention – and within days of the crisis, Nigeria said it would release some of the money owed to foreign airlines: $265 million.
But the reason WHY the airline took the drastic step actually highlights a more widespread problem for Nigeria: a shortage of dollars to pay for foreign services – and two competing exchange rates: the official rate and what Nigerians can get on the black market.
This has left the Central Bank of Nigeria – or CBN – technically subsidising travellers – and foreign companies being underpaid for their services.
For Africa Daily, @kasujja speaks with Oluwatosin Olaseinde, an account and money expert who set up Money Africa, a financial literacy platform.
“You’re seeing a higher cost of living, you’re seeing a reduction in the revenue of the government, so it’s just a whole lot of different (elements) mixed together in this dance.”
Published on Friday, 16th September 2022.
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