Review 40% deduction policy to grow aviation industry, FG urged
For sustainable development of the aviation industry, stakeholders have advised the Federal Government to evaluate extant 40 per cent deduction into the Treasury Single Account (TSA).
According to them, the policy is a major hindrance to sustainability of the sector.
They noted that the move contravenes international standards and practices, as well as provisions of the Federal Airport Authority of Nigeria (FAAN) Act, 2022.
The call followed a paper presentation by FAAN Managing Director, Rabiu Yadudu on “Sustainability of Aviation Industry in Nigeria: Operators’ perspective” at the recent FAAN National Aviation Conference. (FNAN).
A communiqué said participants harped on the need for FAAN to diversify sources of income from aeronautical to non-aeronautical and assets management, as well as ensuring that its assets yield maximum returns.
They observed that majority of landmass around airports are sub-optimally utilised.
The professionals advised the regulator to show leadership in airport management and spur others to develop the industry.
“Stakeholders’ engagement is crucial to airport planning. FAAN should, therefore, ensure that relevant inputs are factored into the master plan.
“Aviation stakeholders should identify, understand and support one another for sustainability to be achieved in the industry.
“There should be a reduction in bureaucratic bottlenecks that constitute a clog to sustainability of aviation development in Nigeria,” they appealed.
The concerned citizens maintained that compliance and monitoring of operations were key to stakeholders’ satisfaction, adding that certification of more airports would boost sustainability.
They charged Nigeria to lead Africa’s certification process.
During the interactive section on Repositioning Cargo Operations through Development of Agriculture and Natural Resources, the conference stressed the need for state-owned airports with interest in Avia Agro cargo to make provision for logistics, storage and connectivity.
The gathering submitted that the biggest gap in the policy was logistics, as movement of produce from farm to airport remains crucial.
It, thereby, called on investors to invest in value chain.
The conference equally charged FAAN on development of standard export cargo processing and packaging centre at its gateways to engender sanity.
The experts also urged the regulator to establish domestic and international cargo operations in all airports, where land abounds.