NCAA, NAMA disagree over proposed revenue sharing formula

A proposed amendment to Nigeria’s aviation revenue-sharing formula has sparked a disagreement between the Nigerian Civil Aviation Authority (NCAA) and the Nigerian Airspace Management Agency (NAMA), with both agencies expressing concerns over the potential impact on their operations.

The dispute centers on a bill before the National Assembly seeking to amend the distribution of the five per cent Ticket Sales Charge (TSC) and Cargo Sales Charge (CSC), statutory levies collected from airline passengers and cargo operators.

Under the current arrangement, the NCAA receives 56 per cent of the revenue generated from the charges, while NAMA receives 22 per cent. The remaining funds are shared among the Nigerian Meteorological Agency (NiMet), the Nigerian College of Aviation Technology (NCAT), and the Nigerian Safety Investigation Bureau (NSIB).

The proposed amendment would reduce the NCAA’s allocation from 56 per cent to 40 per cent and increase NAMA’s share from 22 per cent to 40 per cent, giving both agencies equal portions of the fund.

The proposal has generated mixed reactions within the aviation industry, with labour unions and stakeholders divided over its implications.

The NCAA has warned that reducing its statutory allocation could weaken its financial independence and affect its ability to carry out critical safety oversight functions.

Speaking in Abuja, the authority’s Director of Public Affairs and Consumer Protection, Michael Achimugu, said aviation regulators require sustainable funding to maintain safety standards, train inspectors and effectively regulate the industry.

According to him, the NCAA operates as a cost-recovery regulator rather than a profit-making agency, adding that any significant reduction in funding could undermine its oversight responsibilities.

The NCAA branch of the National Association of Aircraft Pilots and Engineers (NAAPE) also expressed concern that weakening the regulator’s financial capacity could negatively affect aviation safety.

On the other hand, supporters of the proposed amendment argue that NAMA requires increased funding to maintain and modernise the country’s air navigation infrastructure.

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As the nation’s Air Navigation Service Provider, NAMA is responsible for managing Nigeria’s airspace and has continued to face rising operational costs associated with upgrading navigation systems, maintaining equipment and supporting aviation safety services.

Industry stakeholders, however, believe the disagreement extends beyond the proposed sharing formula. They point to the failure of some domestic airlines to remit the five per cent Ticket Sales Charge collected from passengers, resulting in significant revenue losses for the aviation sector.

Analysts have suggested that improving the collection process through automated payment systems and enforcing compliance among airlines could increase the available revenue pool, reducing pressure on the agencies over allocation.

They also recommended an independent review of the funding needs of aviation agencies and additional government support for critical air navigation infrastructure rather than relying solely on statutory charges.

Meanwhile, the Minister of Aviation and Aerospace Development, Festus Keyamo, is said to be engaging both agencies in discussions aimed at resolving the dispute. The ministry has also urged stakeholders to refrain from making inflammatory public statements while consultations continue.