Proposed review of the five per cent Ticket Sales Charge has triggered disagreement over aviation funding, safety oversight and infrastructure investment

A proposal before the National Assembly to increase the Nigeria Airspace Management Agency’s (NAMA) share of the statutory five per cent Ticket Sales Charge (TSC) has ignited a wider debate over the future financing of Nigeria’s aviation industry, with stakeholders divided over whether the current revenue-sharing formula fairly reflects the responsibilities of the country’s key aviation agencies.

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The NAMA Funding Review has placed the agency and the Nigeria Civil Aviation Authority (NCAA) on opposing sides of an increasingly sensitive discussion, as labour unions within the regulator warn that any reduction in its allocation could weaken aviation safety oversight, while supporters of the proposed legislation argue that NAMA’s growing operational demands justify a larger share of industry revenues.

At the centre of the debate is the current distribution of the Ticket Sales Charge, under which the NCAA reportedly receives about 56 per cent, while NAMA receives approximately 23 per cent, despite being responsible for managing Nigeria’s air navigation infrastructure.

Unlike the NCAA, whose primary responsibilities involve regulation, certification, inspections and safety oversight, NAMA operates the country’s air navigation services around the clock, ensuring the safe movement of aircraft within Nigerian airspace through communication, navigation and surveillance systems.

Industry advocates argue that the agency’s responsibilities have expanded considerably as aviation technology has evolved.

Modern air traffic management now depends on sophisticated Communication, Navigation and Surveillance technologies requiring continuous investment in radar systems, Instrument Landing Systems, Very High Frequency Omnidirectional Range equipment, Distance Measuring Equipment, Automatic Dependent Surveillance-Broadcast installations, digital automation platforms and extensive communications infrastructure.

Many of these facilities are located in remote areas where electricity supply is unreliable, compelling the agency to maintain uninterrupted operations through diesel-powered installations while regularly calibrating equipment and upgrading software to meet standards prescribed by the International Civil Aviation Organisation (ICAO).

Supporters of the proposed amendment contend that the existing funding formula no longer reflects these realities.

Retired pilot and aviation stakeholder Mohammed Badamosi said the discussion should begin with an objective assessment of each agency’s statutory responsibilities and operational costs.

“NAMA trains air traffic controllers, engineers and other technical professionals because technology is dynamic. If the agency fails to keep pace with global technological changes, Nigeria risks being isolated from the international aviation community,” he said.

Badamosi questioned the rationale behind the existing allocation model, arguing that much of the industry’s revenue is generated from activities dependent on NAMA’s operational environment.

“The revenue is generated largely from activities driven by NAMA’s operational environment, yet the agency receives a comparatively small share. The question is: what criteria produced the present formula?” he asked.

The Joint Action Committee of the NCAA, however, has opposed any reduction in the regulator’s statutory allocation, proposing instead that NAMA be commercialised or partially privatised to enable it to attract private capital, international financing and bond funding for major infrastructure upgrades.

Proponents of that approach argue that greater financial independence would accelerate investment in next-generation surveillance technology, strengthen backup systems and reduce reliance on annual government budget allocations.

Supporters of the National Assembly proposal acknowledge that commercialisation may offer long-term benefits but insist that NAMA requires stronger statutory funding in the immediate term to sustain existing operations and modernise ageing infrastructure.

According to available financial records, the agency also generates income through en-route charges, overflight charges, calibration services, charter operations, aeronautical information publications, obstacle evaluation and other specialised aviation services.

Nevertheless, several stakeholders argue that these revenue streams are insufficient to finance the scale of technological renewal required by the country’s expanding aviation sector.

Former Commandant of the Murtala Muhammed International Airport, Group Captain John Ojikutu (retd.), also called for a more balanced review of the revenue-sharing framework, urging policymakers to rely on measurable operational factors rather than institutional rivalry.

“Besides NiMet and NSIB, which provide services to other transportation modes, NCAA and NCAT are also generating revenues in their respective areas of function. What we must do with the sharing of the five per cent Ticket Sales Charge, Cargo Sales Charge and Cargo Freight Charge is to be rational, considering the number of personnel, equipment, their spread across the country, their periodic maintenance and mandatory calibrations,” Ojikutu said.

He noted that while the NCAA’s service charges are regulated under the Nigerian Civil Aviation Regulations, NAMA’s charges are largely guided by ICAO standards, making direct comparisons between the agencies more complex.

Drawing on his experience during an International Air Transport Association (IATA) assignment to Rwanda in 2013, Ojikutu said Nigeria once occupied a leadership position in African aviation, recalling that Rwandan aviation security personnel had received training from the Federal Airports Authority of Nigeria (FAAN).

“We still have a lot to do. Political interference must be reduced. Let the agencies have properly constituted management boards in line with the enabling laws so that professionalism, rather than politics, drives decision-making,” he said.

Ojikutu also expressed concern that the industry’s development has not matched its potential over the past two decades, arguing that increases in the number of airports have not translated into corresponding growth in passenger traffic, cargo volumes or airline sustainability.

“Nobody will convince me today that the industry has made the level of progress it should have in the last 20 years. Apart from increasing the number of airports, we have not achieved the projected growth in passenger and cargo traffic.

Our airlines have not recorded significant expansion; many have had very short life spans.

“The political office-holders should give life to the industry, not to themselves. Having 13 ministers supervising aviation in 26 years is not a sign of sustainable growth. What the industry needs is continuity, institutional stability and long-term planning.”

As lawmakers consider the proposed amendment, analysts say the outcome could have far-reaching implications for the financing of aviation infrastructure, regulatory oversight and the long-term competitiveness of Nigeria’s aviation industry.

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While both NAMA and the NCAA perform indispensable functions, many stakeholders believe any review of the revenue-sharing formula should ultimately strengthen the entire sector rather than favour one institution at the expense of another.