The Director-General of the Nigeria Civil Aviation Authority (NCAA), Chris Najomo, has cautioned against any further reduction in the regulator’s statutory funding, warning that such a move could weaken Nigeria’s aviation safety oversight. Speaking on Thursday at a public hearing by the House of Representatives Committee on Aviation, Najomo emphasised that the NCAA’s ability to discharge its statutory mandate depends heavily on the current revenue-sharing formula, particularly the five per cent Ticket Sales Charge (TSC) and Cargo Sales Charge (CSC).
Revenue Dependency and the TSC
Najomo revealed that the TSC accounts for approximately 85 per cent of the NCAA’s revenue, making it a critical source of funding for the authority’s operations. He contrasted this with the Nigerian Airspace Management Agency (NAMA), which generates a substantial portion of its revenue from commercial charges paid by aircraft operators for air navigation services. This distinction, he argued, underscores why any alteration to the funding formula must consider the unique financial structures of each agency.
He cited the International Civil Aviation Organisation’s (ICAO) Policies on Charges for Airports and Air Navigation Services, Doc 9082, which provides guidance on cost recovery for air navigation services. According to Najomo, the cost of such services should principally be recovered from aircraft operators that use them rather than through passenger-based charges like the TSC. He warned that any further reduction in the NCAA’s statutory funding could have serious implications for the authority’s ability to maintain effective safety oversight across Nigeria’s civil aviation industry.
Lawmakers Consider Reviewing TSC and CSC Allocations
The warning comes as lawmakers consider proposals to review the distribution of the five per cent TSC and CSC among aviation agencies. The debate has attracted concerns from airline operators, who argue that the TSC has become a financial burden on domestic carriers. The Airline Operators of Nigeria (AON), represented at the hearing by former Managing Director of NAMA, Roland Iyayi, urged the National Assembly to abolish the five per cent TSC and replace it with a flat-rate charge similar to the Passenger Service Charge collected by the Federal Airports Authority of Nigeria (FAAN).
Iyayi argued that the percentage-based system places additional pressure on airlines at a time when operators are grappling with high fuel, maintenance, and other operating costs. The AON also proposed increasing NAMA’s share of aviation revenues and establishing a dedicated Aviation Development Fund to finance infrastructure and other sectoral needs.
Experts Warn Against Equal Funding Treatment
However, Najomo said any additional funding required by NAMA should first be pursued through improved collection of its statutory commercial revenues, greater operational efficiency, and stronger corporate governance. He added that targeted government support could be considered for strategic capital infrastructure where necessary, in line with ICAO policies and international best practice.
Other aviation experts at the hearing also warned against treating the regulator and aviation service providers in the same way under a revised funding arrangement. Musa Nuhu, a former Nigeria representative on the ICAO Council and immediate past director-general of the NCAA, said the regulator had a distinct responsibility that should not be weakened by changes to the funding structure. Nigeria’s Permanent Representative to ICAO, Mahmud Ben-Tukur, similarly stressed the importance of maintaining the independence and financial capacity of the aviation regulator.
International Voices and Industry Stakeholders
Speaking virtually, Bernard Aliu, a former Nigeria permanent representative to ICAO and former president of the ICAO Assembly, and Harold Demuren, a former director-general of civil aviation, also backed the call to preserve the NCAA’s financial independence. They said a strong and adequately funded regulator was essential to maintaining Nigeria’s aviation safety oversight system and compliance with international aviation standards.
The public hearing was attended by members of the National Assembly’s aviation committees, including their chairmen, Abdulfatai Buhari and Abdullahi Idris Garba, as well as heads of aviation agencies, airline operators, and other industry stakeholders. The outcome of the hearing will inform the committee’s recommendations on the proposed review, which could have far-reaching consequences for Nigeria’s aviation sector.
