Aviation agencies scramble for more funding at public hearing

 

Aviation agencies scramble for more funding at public  hearing 

The clamour for more funding took centre stage  in Abuja yesterday as aviation agencies : Nigerian Airspace Management Agency (NAMA) and the Nigeria Civil Aviation Authority (NCAA), sought a review of the sharing template  of the revenues accruing from the five percent Ticket Sales Charge (TSC) and Cargo Sales Charge (CSC).

The  agencies' chief executives made their presentations while speaking at a House of Representatives public hearing in respect of  the proposed revision of the statutory sharing formula for the five percent Ticket, Charter, and Cargo Sales Charge (TSC/ CSC)

 Managing Director of the Nigerian Airspace Management Agency (NAMA), Farouk Umar Ahmed, while canvassing  an overhaul of the agency’s funding model said sustainable air safety cannot be built on an outdated financial framework.

 Ahmed said the amendment before lawmakers goes far beyond mere revenue distribution.

It is, he noted, a vital investment in the “invisible infrastructure” that enables safe, efficient economic activity across Nigerian airspace.

But, the  Director-General of the Nigerian Civil Aviation Authority (NCAA), Capt Najomo said any decision to review the 56 percent  accruing to the regulator  cannot guarantee safety oversight in Nigeria.

In his presentation, Najomo called for a 65 percent  rise in its TSC revenue because, the agency  carries out enormous regulatory oversight.

Driving his agitation for more funds, the  NAMA chief appealed to the National Assembly to increase the agency’s share of the existing five percent of the  TSC/ CSC pool from its current 22 percent to 56 percent.

Breaking down the mathematics behind the current arrangement, Ahmed explained, “On every ₦1,000 of qualifying ticket, charter, or cargo sales, the  five percent charge produces ₦50. NAMA currently receives just ₦11 of that ₦50, making our effective share a meagre 1.10 percent of the underlying sale.

“If our share is adjusted to 56 percent NAMA would receive ₦28 from that same ₦50. The  five percent charge itself would not increase, and passengers would not pay a single extra naira. The amendment simply directs a fairer share of the existing pool to the very infrastructure that guides the aircraft.”

Justifying the request, Ahmed disclosed that NAMA’s operational cost profile for 2023 exceeded ₦43 billion, comprising roughly ₦21 billion in personnel expenditure, over ₦12 billion in capital expenditure, and more than ₦10 billion in overheads.

He contrasted these escalating operational expenses, which cover air traffic controllers, engineers, calibration, navigation aids, and backup power across the country, with tariffs that have been frozen for nearly two decades.

“A navigation charge as low as ₦11,000 per flight has remained unchanged since June 2008,” Ahmed stated. “Consider what has happened to the cost of fuel, electricity, foreign exchange, imported components, software licenses, and specialist training since then. The service has had to absorb today’s costs with yesterday’s tariff base. The dedication of our workforce has bridged that gap, but dedication is not a substitute for a sustainable funding system.”

The NAMA MD also highlighted the urgent need to modernise the Total Radar Coverage of Nigeria (TRACON) system.

While TRACON has served the nation well for years, its components now require a planned renewal and transition strategy to avoid equipment obsolescence, component scarcity, and service failure.

Beyond the TSC / CSC  pool, Ahmed urged  the Parliament to recognise obstacle assessments and WGS-84 aeronautical surveys as chargeable technical services rendered by NAMA, with fees remitted directly to the agency.

Aligning with the International Civil Aviation Organisation (ICAO) cost-recovery model, he recommended a 90/10 revenue-sharing formula in favour of NAMA for aviation height clearance technical evaluations, while the Nigerian Civil Aviation Authority (NCAA) retains its 10 percent regulatory component.

Pushing  NAMA’s prayer to the legislature, Ahmed urged the National Assembly to approve the 56 percent allocation to NAMA from the five percent TSC/ CSC  pool, harmonise affected statutory enactments, recognise and mandate direct remittance for obstacle assessments and WGS-84 surveys, establish transparent, automated remittance systems paired with strict accountability and oversight.

"Every day, long before a passenger boards an aircraft, NAMA’s personnel and systems are already at work,” Ahmed concluded.

“Nigeria should not merely maintain the airspace of yesterday; it must build the airspace that tomorrow’s traffic will require."