Reps push aviation law overhaul as NCAA earns N1.13tn

Nigeria's House of Representatives is advancing efforts to overhaul the nation's aviation laws, introducing a new revenue-sharing formula that could dramatically reshape the distribution of billions of naira generated from the sector. The proposed amendment targets the five percent Ticket Sales Charge and Cargo Sales Charge, which collectively brought in approximately N1.13 trillion in 2026, according to figures presented to lawmakers.

The initiative seeks to review the current sharing formula among aviation agencies, automate remittances, harmonize conflicting legal provisions, and bolster the financial capacity of critical institutions. Speaker Tajudeen Abbas, represented by bill sponsor Sada Soli, assured stakeholders that the review aims to tackle long-standing structural and funding challenges within the industry.

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I am happy so many things have come out of this public hearing. I am happy that the areas we are set to amend are now becoming clearer.

However, the proposed changes have ignited tension among agencies, notably the Nigeria Civil Aviation Authority (NCAA) and the Nigeria Airspace Management Agency (NAMA). Under the existing framework, the NCAA receives 56 percent of the charges, while NAMA gets 22 percent. The amendment proposes reducing the NCAA's share to 40 percent and increasing NAMA's to the same percentage.

The NCAA advocates for retaining its funding to enhance regulatory and safety oversight, while NAMA argues its expanding operational needs and aging infrastructure necessitate a larger allocation. Soli emphasized that the reform intends to establish a more equitable and transparent financial system, aligning Nigerian aviation laws with international standards.

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We are changing the law and changing the name of AIB to NSIB to align with international best practic