Conflict Arises Over Agency Debit Memo in Nigeria’s Travel Sector
A growing dispute between international airlines and travel agents in Nigeria centers around the Agency Debit Memo (ADM), a mechanism used to penalize agents for violations in booking processes. This formal document, issued through the Billing and Settlement Plan (BSP), serves as a deterrent against misconduct and ensures compliance among travel agents.
However, travel agents allege that airlines exploit this system as a means of financial gain. They contend that airlines can manipulate the technology to eliminate false reservations from the system, ostensibly at the agents’ expense. This friction comes to the forefront as industry stakeholders recognize the significant losses faced by airlines in Nigeria, compounded by booking discrepancies, totaling an estimated N1 billion in 2025 alone.
The issue gained attention during the PartnerPlus Connect Live event, hosted by Finchglow Travels with the theme “Profit Protection and ADM Management Strategies.” Ezekiel Ikotun, the Managing Director of Finchglow Travels, elaborated on the implications of ADMs, describing them as a costly issue that has persisted for two decades. He noted that his company alone incurred losses of approximately 70 million Naira in just one year due to this system.
Ikotun emphasized that airlines need to reconsider their approach in light of increasingly price-sensitive travelers, explaining that every expense is felt in a competitive market. By 2025, the industry is projected to have collectively lost at least one billion Naira attributed to ADMs. He pointed out that some airlines have successfully implemented advanced systems designed to prevent ADM-related penalties by managing bookings more effectively.
In discussing the need for increased awareness and education, Ikotun mentioned the importance of sharing knowledge about new technologies. This, he argued, would enable travel partners to minimize risks and improve operational efficiency. Furthermore, his remarks suggested that some airlines may be using ADMs as a revenue stream, collecting fees from agents rather than addressing issues within the booking process.
Reacting to these allegations, Ethiopian Airlines’ Sales Manager in Lagos, Adetola Alabi, firmly denied claims that the ADM system functions as a revenue-generating tool for airlines. She maintained that it serves to prevent booking violations, asserting that the airline aims to minimize costs for travel agents and improve procedural compliance through ongoing training and automated alerts for potential errors.
Alabi acknowledged that the potential for circumvention of the system remains, as some individuals attempt to bypass established protocols despite warnings. She reiterated the importance of adhering to the airline’s processes to avoid unnecessary penalties and highlighted the advancements in technology currently being implemented to further mitigate such issues.
Philiehiwot Mekonnen, Nigeria’s Area Manager for Ethiopian Airlines, reinforced this message, noting that new technological developments are in place to better guide agents throughout the reservation process. These systems are designed to provide immediate feedback to identify and prevent potential violations, ultimately enhancing overall efficiency within the airline’s operations.
Ebiele Bekesuo, Operations Manager at Finchglow Travels, highlighted the importance of collaborative forums like PartnerPlus Connect Live, which aim to educate and inform all stakeholders in the travel industry. Through knowledge-sharing initiatives that involve airlines and global distribution systems (GDS), the goal is to empower travel agents and reduce missteps in the complex ecosystem of the travel sector.
The heightened attention given to the ADM controversy signals an opportunity for resolution between airlines and travel agents, fostering a more transparent and equitable environment in Nigeria’s bustling travel market.
