The Nigeria Civil Aviation Authority (NCAA) has warned that a proposal to reduce its statutory share of the five per cent Ticket Sales Charge (TSC) could undermine aviation safety oversight and weaken the country’s ability to maintain high regulatory standards.
The warning follows a bill before the National Assembly seeking to amend the current revenue sharing formula by reducing the NCAA’s allocation from the Ticket Sales Charge in favour of the Nigerian Airspace Management Agency (NAMA).
Speaking with journalists in Abuja, the NCAA’s Director of Public Affairs and Consumer Protection, Michael Achimugu, said the proposed change could have serious implications for the aviation sector, particularly the Authority’s capacity to effectively carry out its safety and regulatory responsibilities.
He explained that the NCAA depends on the statutory charge to finance key regulatory activities, including safety inspections, certification, surveillance, and the training of technical personnel responsible for monitoring airlines, airports and other aviation service providers.
Under the current arrangement, revenue generated from the five per cent Ticket Sales Charge is distributed among aviation agencies, including NAMA, the Nigerian Meteorological Agency (NiMet), the Nigerian College of Aviation Technology (NCAT) and the Nigerian Safety Investigation Bureau (NSIB), in line with existing laws.
Achimugu argued that reducing the NCAA’s allocation would further strain its finances, noting that the agency’s revenue is already subject to deductions by the Federal Government.
According to him, the regulator requires more funding rather than less, stressing that adequate financing is essential to sustaining the country’s improved aviation safety record.
He said the absence of major air accidents in recent years is largely due to the NCAA’s rigorous regulatory oversight and continuous enforcement of safety standards.
Achimugu also emphasised that aviation regulators must possess higher levels of technical expertise than the operators they supervise, making continuous training and capacity development critical to effective regulation.
He noted that inspectors who lack sufficient technical competence cannot adequately enforce safety requirements or ensure compliance within the industry.
The NCAA spokesman further attributed Nigeria’s strong performance in international aviation safety and security audits to the Authority’s consistent oversight, adding that its regulatory efforts have also strengthened the protection of passengers’ rights.
He urged lawmakers and industry stakeholders to carefully assess the implications of reducing the regulator’s funding, noting that aviation oversight agencies worldwide receive adequate financial support because of their responsibility to safeguard lives.
Achimugu maintained that agencies with independent revenue generating mandates should focus on improving their own sources of funding instead of seeking a larger share of the NCAA’s statutory allocation.
He reiterated that the NCAA is a cost recovery agency, not a revenue-generating institution, and warned that inadequate funding could affect staff training, remuneration and overall regulatory effectiveness.
On the dispute over the proposed revenue sharing formula, Achimugu disclosed that the Minister of Aviation and Aerospace Development, Festus Keyamo, has initiated discussions with the affected agencies to find an amicable resolution.
He also appealed to stakeholders to avoid making inflammatory public statements while consultations are ongoing, saying the minister is already addressing the matter.
The NCAA further dismissed reports alleging that it owes NAMA outstanding statutory remittances.
Achimugu clarified that remittances are processed directly by the Central Bank of Nigeria (CBN), not by the NCAA, adding that payments are already being handled through the appropriate channels and that there is no basis for claims that the Authority is indebted to NAMA.
(The Whistler)
