Stakeholders Push for NAMA's Navigational Charges Review

Stakeholders Push for NAMA's Navigational Charges Review

The Nigerian Airspace Management Agency (NAMA) is sounding the alarm on the need for increased funding to maintain and upgrade its navigational aids, crucial for ensuring safe air travel. With equipment replacement overdue and revenue deductions impacting operations, stakeholders urge the government to reconsider the 50% revenue deduction and review navigational charges, last updated 18 years ago. 

NAMA holds the ace in Navigational aids provision ensuring the safety of aircraft from take off and landing relying on facilities operated by unsung heroes.

The agency has continued to ensure the provision of seamless navigation of aircraft in its airspace both for foreign and domestic airlines not only because of the the reliability of it's equipment but as a result of ingenuity of professionals in the system. Most of these navigational aids are

yearning for replacement. Over the years, different managements have tried to sustain the day to day running of the agency with limited resources generated by the agency. 

A reliable navaids is the backbone of safe and secured airspace, but the present management has been grappling with the challenges of funding especially, as it concerns replacement of navaids and other backups. In the midst of this shortage of funds, the Federal government has continued to deduct from source 50 percent of the revenue generated by agencies in the aviation sector. This is seen by stakeholders as retrogressive and capable of distabilising the whole organisational system. 

Stakeholders in the sector have been calling for upward review of navigational charges by the Nigerian Airspace Management Agency to enable the agency meet its operational challenges. 

The last navigational charges was done over 18 years ago and next increment on charges and fees by the agency would have taken effect from September 1, 2024. 

It is glaring that the tariffs of 18 years ago is not applicable in today's economy, this is the more reason for the upward review being clamoured by stakeholders. 

Some stakeholders have argued that airline operators can not shy away from the fact that it is long over due for the review of navigational charges. 

Engr Selzing Miri, President of the National Association of Air Traffic Engineers expressed worry what NAMA is passing through in terms of finance. 

To Miri, the navigational charges are long overdue for review adding that the 50 percent revenue deduction from the agency has remained a greatest challenge. 

"We have made it clear that without enough funding, NAMA will not be able to sustain the level safety being enjoyed in the aviation industry. Most of these facilities are critical to ensuring safety of flight movements"

He added that the Agency needs to purchase, upgrade and maintain these facilities to achieve it's goal saying that it remained very critical to look into the funding of NAMA to provide critical infrastructure. 

It will not be out of place for NAMA to tinker with En-route Navigational Charges (ENC) and Terminal Navigational Charges (TNC), two channels that the agency make the largest percentage of their revenue. 

Both charges had remained static since 2008, giving the airlines a latitude to gainfully go about their operations all through the years.

Available statistic shows the unit rate/minimum charge for en-route is N18,000 from N2,000 per flight while the new unit rate/minimum charge for terminal navigation charge (TCN domestic) is N54,000 from N6,000 per flight. 

In addition, the extension of hours of service is also to be reviewed from N50,000 to N450,000 per extension to enable the Agency recover the cost of diesel and other logistics during the period of extension.

It is therefore baseless to condemn the introduction of new charges should the agency deploy it's staff, extend hours of operations while on diesel and deprive staff of their overtime entitlement by refusing to pay. The best is for the airlines to continue to operate with the normal operational hours without requesting for extension. 

I the face of all these, airlines have been increasing the cost of tickets over the years.

For instance, a one-way ticket that was going for N15, 000 five years ago is now sold for over N180, 000. How come, would they have the morale to question an agency which is operating under the same economic environment with them. 

Miri also stated that it is not realistic and ideal for NAMA to remain charging N50, 000 for extension of operations for an hour, saying it's ridiculous. 

"What is N50,000 to extend the hours operations and nobody wants us to increase it. You will run generator for an hour, make contengency arrangements for the staff to be at the airport. Airlines are also abusing the privilege as they can easily afford the amount and keep staff for hours"

Since NAMA's funds are generated from services they provide to the flying community, common sense dictates that, without these fund NAMA can’t discharge its responsibility of ensuring the safety of the airspace effectively. 

For the President of NACAN Alhaji Mohammed Sani, NAMA is in dire need of funds for the continous maintenance of its infrastructure, training of staff and payment of salaries adding, that there is an urgent need for upward review of charges by NAMA. 

According to Sani, it is the only way that NAMA can get it's revenue to improve on critical areas concerning safety 

With an expenditure of over N21 billion in personnel costs alone in 2023; expenditure of over N12 billion in capital costs and over N10 billion in overhead costs in the same year, one does not need to be told that the agency needs to up his revenue generation drive, especially when it does not have any Federal Government allocation 

As a service provider and in accordance with ICAO best practices, NAMA is a non-profit organization. This is well spelt out in ICAO Doc 9082 which recommended cost recovery for service provision to cater for the cost of equipment, personnel, trainings and other ancillary costs. There is no doubt that this is exactly what NAMA is trying to achieve. 

Section 111 part 1 in ICAO’s Policies On Charges For Air Navigation Services states that "an equitable cost-recovery system could comprise charges based on the allocation of total air navigation 

services costs incurred on behalf of users" .

It further added that "the establishment of the cost basis for air navigation services charges should observe the following principles: The cost to be allocated is the full cost of providing the air navigation services, including appropriate amounts for cost of capital and depreciation of assets, as well as the costs of maintenance, operation, 

management and administration. 

"The costs to be taken into account should be those assessed in relation to the facilities and services, including satellite services, provided for and implemented under the ICAO Regional Air Navigation Plan(s), supplemented where necessary pursuant to recommendations made by the relevant ICAO Regional Air Navigation Meeting, as approved by the Council. Any other facilities and services, unless 

provided at the request of aircraft operators, should be excluded, as should the cost of facilities or 

services provided on contract or by the aircraft operators themselves, as well as any excessive construction, operation or maintenance expenditures. 

"The costs of air navigation services provided during the en-route, approach and aerodrome phases of aircraft operations should be identified separately where possible", ICAO added in its policies on charges.

Be that as it may and from all indications, the increase of NAMA charges with 800 per cent are valid and in line with global practices. 

This is more so, justifiable because if it was right for airlines and other aviation related organizations to increase price of services and products in response to every prevailing economic situation in the country in order to survive,why can't NAMA do same to keep afloat and render safe services. 

The President Air Transport Services Senior Staff Association of Nigeria, Comrade John Ogbe notes that the last review which is over 15 years, can no longer sustain the agencie as a result of the economic situation in the country which has affected every aspect.

"For NAMA, there is something I observed, their navigational charges have been there for over 15 years and the rate has not changed. Even if it is on cost recovery, the cost of providing that services 15 years ago can not be the same thing now. Government should look into the navigational charges by NAMA, it is very important"

Ogbe explains that a proper upward review will enable the agency to functionally carry out it's responsibility and support adding that absence of navigating services will lead to safety concern

It is therefore, healthy for NAMA to guard jealously it's source of generating revenue in order to survive. When this is done and with cooperation of airlines and other stakeholders, the rapport will strengthen the industry which will eventually lead to improved air traffic management and better service delivery

For Dr Ibrahim Audu, President of Aeronautical Information Management Association of Nigeria, the issue of collecting same navigational charges 18 years after is not in consonant with modern and sophisticated equipment that is being installed by NAMA in discharging it's statutory responsibilities.

Audu notes that a provider, NAMA can not render the services of 18 years now, we have to acquire equipment for current technology which the agency has been doing.

According to him, the price of diesel 18 years ago to power their equipment is not the same now.

Audu called on the federal government to intervene and save NAMA .