NIGERIA Civil Aviation Authority (NCAA) has opposed funding reductions, stressing it is already underfunded per International Civil Aviation Organisation (ICAO) standards.
The NCAA warns that increasing Nigerian Airspace Management Agency (NAMA)’s revenue share could jeopardize aviation safety and lead to negative ICAO audit outcomes.
The Director of Public Affairs and Consumer Protection at the NCAA, Michael Achimugu, emphasized that losing funding would endanger safety oversight and compliance with ICAO standards.
A proposed amendment to change the allocation of airline Ticket Sales and Cargo Sales Charges seeks to reduce NCAA’s share from 56% to 40% while raising NAMA’s to 40%, which NCAA deems harmful to safety.
Achimugu argues NAMA should find alternative funding sources instead of relying on NCAA. He also indicated that budget delays hinder training for NCAA personnel, affecting their operational capacity.
Olumide Ohunayo, an aviation analyst, emphasizes the need for a broader discussion beyond revenue-sharing with a focus on government remittances and rising operational costs in aviation. He criticizes the high percentage of revenue remitted to the federal government, which detracts from necessary investments in infrastructure and manpower.
Additionally, he points out that the creation of extra directorates in aviation agencies has increased operational expenses, questioning the justification for such expansions.
While he acknowledges the importance of NCAA and NAMA, he calls for a review of the current revenue-sharing arrangement, arguing for financial prudence and the necessity to address larger fiscal issues, such as statutory remittances and outstanding charges from airlines.