International travel tickets in Nigeria are on the verge of rising following a directive to travel agencies to adjust exchange rates from ₦420.86 to ₦460 effectively, an 8.5% devaluation.
Nigeria’s official exchange rate at the Investors and Exporters window is currently pegged at ₦410 to $1.
An email sent to travel agencies indicates that exchange rates will be “going from ₦420.86 to ₦460 per dollar on GDS” starting Tuesday, July 13th 2021 (today) while also advising the agencies to “issue all pending tickets” based on the new rates.
The GDS is an acronym for Global Distribution System and is the platform used by the travel industry for issuing tickets. Booking platforms such as Amadeus, Sabre, Galileo, etc, all running on GDS already have their exchange rate adjusted to ₦460/$1.
The adjustment in the exchange rate, according to Nairametrics, is a reflection of the market value of the naira in the exchange rate market.
Unlike other sectors, the travel sector has a history of relying on the official exchange rate (not IFEX) as a basis for issuing tickets after converting from dollars to naira.