NCAA warns against cutting aviation funding

The Director-General of the Nigeria Civil Aviation Authority (NCAA), Chris Najomo, has warned against reducing the regulator’s funding. He said this could harm Nigeria’s aviation safety oversight.

Mr Najomo spoke on Thursday at a public hearing by the House of Representatives Committee on Aviation. This hearing was about reviewing the allocation of the five per cent Ticket Sales Charge (TSC) and Cargo Sales Charge (CSC) at the National Assembly Complex in Abuja.

He mentioned that the NCAA supports proper funding for all aviation agencies. But he cautioned that changing the revenue-sharing formula without considering the NCAA’s duties could hurt its ability to carry out its responsibilities.

The TSC makes up about 85 per cent of the NCAA’s revenue. This charge is vital for the authority’s operations.

In contrast, the Nigerian Airspace Management Agency (NAMA) makes a large part of its money from commercial charges that aircraft operators pay for air navigation services.

Mr Najomo pointed to the International Civil Aviation Organisation’s (ICAO) Policies on Charges for Airports and Air Navigation Services, Doc 9082. This document explains how costs related to air navigation services should be recovered.

He stated that the costs should mainly come from aircraft operators using the services. They should not come from passenger-based charges like the TSC.

He also said that cutting NCAA’s funding could affect its ability to keep up safety oversight across Nigeria’s civil aviation industry.

He told lawmakers that the authority cannot guarantee the same level of safety oversight if its funding is cut without finding a new, stable source of revenue.

This warning comes as lawmakers are looking at proposals to change how the five per cent TSC and CSC are shared among aviation agencies.

Airline operators have also shared their concerns. They say that the TSC has become a heavy financial burden for domestic carriers. They want to replace the percentage-based charge with a fixed fee.

The Airline Operators of Nigeria (AON), represented by former Managing Director of NAMA, Roland Iyayi, urged the National Assembly to do away with the five per cent TSC. They want it replaced with a flat-rate charge similar to the Passenger Service Charge from the Federal Airports Authority of Nigeria.

Mr Iyayi argued that the percentage-based system adds more pressure on airlines, especially now that they are facing high fuel, maintenance, and other costs.

The AON also suggested that NAMA should get a bigger share of aviation revenues. They want a dedicated Aviation Development Fund to finance infrastructure and other sector needs.

Mr Najomo, however, said any extra funding needed by NAMA should come from better collection of its commercial revenues. He also called for improved operational efficiency and better corporate governance.

He added that targeted government support could help with important capital projects when necessary. This would follow ICAO policies and global best practices.

Other aviation experts at the hearing warned against treating the regulator and aviation service providers the same way in any new funding plan.

Musa Nuhu, a former Nigeria representative on the ICAO Council and past director-general of the NCAA, said the regulator has a unique responsibility that should not be weakened by funding changes.

Nigeria’s Permanent Representative to ICAO, Mahmud Ben-Tukur, also highlighted the need to keep the aviation regulator independent and financially strong.

They pointed out that while aviation agencies do work together, the NCAA is responsible for safety oversight in Nigeria’s civil aviation.

Speaking virtually, Bernard Aliu, a former Nigeria permanent representative to ICAO and past president of the ICAO Assembly, and Harold Demuren, a former director-general of civil aviation, supported the idea of maintaining the NCAA’s financial independence.

They agreed that a strong and well-funded regulator is key to keeping Nigeria’s aviation safety system and meeting international aviation standards.

The public hearing had members from the National Assembly’s aviation committees, including chairmen Abdulfatai Buhari and Abdullahi Idris Garba. Heads of aviation agencies, airline operators, and other industry stakeholders were also present.