NAMA, NCAA face off over ticket levy sharing

A quiet dispute between the Nigeria Airspace Management Agency (NAMA) and the Nigeria Civil Aviation Authority (NCAA) over the distribution of the five percent Ticket Sales Charge is creating ripples within Nigeria's aviation sector. The controversy centers on a proposal before the National Assembly to increase NAMA's allocation, a move that has sparked debate about the financial needs and operational realities of both the air navigation service provider and the aviation regulator.

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The proposal before the National Assembly to increase the Nigerian Airspace Management Agency’s share of the statutory five per cent Ticket Sales Charge has emerged as one of the most contentious issues currently facing Nigeria’s aviation industry.

Labor unions within the NCAA have voiced concerns that reducing the regulator's share could compromise safety oversight functions. However, industry experts and proponents of the bill argue that the current funding formula does not adequately reflect the significant operational demands placed on NAMA. They contend that NAMA's role in managing Nigeria's airspace around the clock, providing critical air navigation services from flight plan filing to safe landings, requires substantial investment.

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While labour unions within the Nigeria Civil Aviation Authority have said that reducing the regulator’s allocation could weaken safety oversight, various industry experts and supporters of the bill insist that the conversation must also reflect the enormous operational burden carried daily by NAMA.

NAMA's responsibilities involve operating and maintaining a complex network of Communication, Navigation, and Surveillance (CNS) technologies across the country, often in remote locations. This includes Instrument Landing Systems, Doppler VOR equipment, Distance Measuring Equipment, radar facilities, and communication systems, all of which require regular calibration, software upgrades, and expensive spare parts. Many installations rely on continuous diesel power due to unreliable electricity, and technical personnel are deployed to challenging terrains to ensure uninterrupted operations, adhering to International Civil Aviation Organization standards.

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Does the existing funding formula truly reflect the responsibilities and financial demands of the country’s air navigation service provider?

Supporters of the proposed revenue-sharing adjustment argue that the aviation industry has evolved considerably since the current formula was established. Advances in satellite navigation, digital communications, cybersecurity, and performance-based navigation necessitate continuous investment in infrastructure and technology. They believe that NAMA's critical role in ensuring the safety and efficiency of air travel warrants a revised funding structure that better aligns with its operational scope and financial requirements.

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Unlike regulatory agencies focused mainly on certification, inspections and compliance oversight, NAMA is responsible for operating Nigeria’s aviation infrastructure around the clock. Every aircraft flying into, through or out of the country relies on its systems.