NAMA demands 56% of aviation revenue as AAAU seeks more devt funding

Nigerian Airspace Management Agency (NAMA). Photo FACEBOOK

The Nigerian Airspace Management Agency (NAMA) has requested the National Assembly to increase its share of the statutory five per cent aviation revenue pool from the current 22 per cent to 56 per cent, citing the rising cost of maintaining safety-critical infrastructure.

Making the demand yesterday at a public hearing organised by the House of Representatives Committee on Aviation, the Managing Director of NAMA, Farouk Umar, warned that the rising cost was putting increasing pressure on the country’s air navigation system.

Umar argued that the existing revenue-sharing formula no longer reflects the scale of the agency’s statutory responsibilities or the financial burden of keeping Nigeria’s airspace safe.

In a similar development, the African Aviation and Aerospace University (AAAU), Abuja, has asked the National Assembly to include it as a statutory beneficiary of the five per cent Ticket Sales Charge (TSC), with at least 10 per cent of the revenue for aviation manpower development, research and innovation.

Umar told the lawmakers that the safety of the aviation sector depends on strong and adequately funded institutions, stressing that the regulator must be strong, meteorological services dependable, while accident and incident investigation must be independent and aviation training excellent.

According to him, air navigation services are continuous, technology-intensive and unforgiving of delay, and a deferred radar support, navigation-aid calibration, or controller training can reduce the resilience of the national system.

He further disclosed that the cost of keeping Nigerian airspace safe had outgrown the existing funding formula, with the agency recording a total cost profile exceeding N43 billion in 2023. The expenditure, he noted, included approximately N21 billion in personnel costs, over N12 billion in capital expenditure, and over N10 billion in overheads.

Behind these numbers, he stated, are controllers, engineers, communication systems, navigation aids, surveillance platforms, power systems, spares, software, calibration, training and facilities spread across the country.

At the same time, a navigation charge for as low as N11,000 per flight had remained unchanged since June 2008, irrespective of the cost of fuel, electricity, foreign exchange, imported components, software licences and specialist training since 2008.

Noting that the service has had to absorb today’s costs with yesterday’s tariff base, he stated that though a dedicated workforce has helped bridge that gap, dedication is not a substitute for a sustainable funding system.

Umar said it was equally important for the law regulating the sector to recognise in practical and sustainable terms the enormous responsibility on NAMA as Nigeria’s sole air navigation service provider.

According to him, NAMA currently receives only 22 per cent of the five per cent statutory revenue pool despite carrying a substantial portion of the operational responsibilities required for safe flight operations across the country.

Consequently, he stressed that the proposed 56 per cent allocation from the available pool would not increase the existing five per cent charge but ensure a more sustainable allocation of the available revenue to the agency responsible for critical air navigation infrastructure.

Meanwhile, in requesting further allocation for manpower development, the AAAU Acting Vice-Chancellor, Mustapha Abdullahi, said the institution was established specifically to develop the highly skilled manpower required to sustain Nigeria’s aviation industry and should be recognised as a statutory beneficiary of the five per cent TSC.

According to the university, the proposed amendments to the aviation laws provide an opportunity to ensure that funding within the sector is aligned not only with immediate operational responsibilities but also with the long-term sustainability of aviation manpower development.

The AAAU argued that aviation safety ultimately depends on competent professionals, including air traffic managers, aeronautical engineers, aviation managers, safety specialists, meteorologists, airspace planners, aerospace scientists, airport managers and environmental specialists.

Earlier, Speaker of the House of Representatives, Abbas Tajudeen, reiterated the legislature’s resolve to strengthen the aviation industry’s financial framework and enhance the capacity of aviation agencies to effectively manage and safeguard Nigeria’s airspace.

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