Stakeholders in Nigeria’s aviation sector have renewed calls for a review of the revenue-sharing formula for the five per cent Ticket Sales Charge/Cargo Sales Charge (TSC/CSC), arguing that the Nigerian Airspace Management Agency (NAMA) requires a larger share of the funds to modernise critical air navigation infrastructure.
The calls come amid concerns by the Nigeria Civil Aviation Authority (NCAA), which warned that any reduction in its statutory allocation could undermine aviation safety oversight and regulatory effectiveness.
Speaking in Abuja, the NCAA’s Director of Public Affairs and Consumer Protection, Michael Achimugu, said the authority relied heavily on revenue from the TSC to finance its statutory regulatory responsibilities, while NAMA was established to operate as a self-sustaining agency.
Under the revenue-sharing formula provided in the Nigeria Civil Aviation Act, 2022, proceeds from the five per cent TSC/CSC collected on passenger tickets and cargo are distributed as follows: the NCAA receives 56 per cent, NAMA 22 per cent, the Nigerian Meteorological Agency (NiMet) nine per cent, the Nigerian College of Aviation Technology (NCAT) seven per cent, and the Nigerian Safety Investigation Bureau (NSIB) six per cent.
A bill currently before the National Assembly, which has passed second reading, proposes reducing the NCAA’s allocation from 56 per cent to 40 per cent while increasing NAMA’s share from 22 per cent to 40 per cent.
Aviation stakeholders have expressed support for the proposed amendment, arguing that the current allocation does not reflect NAMA’s responsibility for maintaining and upgrading air navigation infrastructure.
President of the Aviation Safety Round Table Initiative (ASRTI), retired Air Commodore Ademola Onitiju, said increasing NAMA’s allocation was justified given its role in providing aeronautical and air navigation services.
He noted that investment in modern navigation infrastructure was essential to ensuring the safe management of Nigeria’s airspace and enhancing the country’s aviation safety standards.
However, Onitiju also urged the Federal Government to provide additional funding for the NCAA, noting that the authority performs regulatory functions and fulfils Nigeria’s obligations under the International Civil Aviation Organisation (ICAO).
Retired Group Captain John Ojikutu, an aviation safety and security expert, also criticised the existing revenue-sharing formula, describing it as inequitable.
He argued that NAMA bears significant operational costs associated with maintaining critical navigational equipment, including instrument landing systems, radar facilities and very high frequency omnidirectional range (VOR) systems, many of which require periodic calibration by foreign specialists.
According to Ojikutu, the current allocation fails to reflect the agency’s operational responsibilities, adding that he had previously raised the issue with the National Assembly.
Meanwhile, former Managing Director of NAMA and Trustee of the Airline Operators of Nigeria (AON), Roland Iyayi, questioned the sustainability of the five per cent Ticket Sales Charge for domestic airlines.
He argued that the levy had failed to achieve its original objective of financing aviation infrastructure and proposed replacing it with an Aviation Development Fund dedicated exclusively to infrastructure projects within the sector.
According to Iyayi, revenue generated from the charge had, over the years, been diverted to purposes outside aviation, leaving the industry underfunded despite decades of collecting the levy.
The proposed amendment to the revenue-sharing formula is currently before the National Assembly as stakeholders continue to debate the most effective approach to funding aviation infrastructure while maintaining regulatory oversight and safety standards.
