Stakeholders: Government Deductions May Push Aviation Agencies to Cash Crunch, Bankruptcy

Stakeholders in Nigeria's aviation industry are raising alarms about the precarious financial state of key aviation agencies, attributing their struggles to substantial revenue deductions remitted to the federal government's Consolidated Revenue Fund (CRF).

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According to the stakeholders, such heavy deductions have brought severe financial distress on the operations of the agencies, and could force them into bankruptcy

Industry sources suggest that agencies such as the Federal Airports Authority of Nigeria (FAAN), the Nigeria Civil Aviation Authority (NCAA), and the Nigeria Airspace Management Agency (NAMA) are experiencing severe financial distress, potentially leading to insolvency. This financial strain reportedly hinders their capacity to meet operational obligations, execute crucial projects, and ensure timely payment of salaries and allowances to staff.

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the agencies were practically in the red because the federal government “seemed insensitive about our operations and they are deducting our revenue at source.”

Workers within these agencies have voiced concerns over the billions of naira remitted to the government, claiming these payments have significantly impaired their operational capabilities. For instance, FAAN remitted N281,881,317.34 to the CRF in 2024 and N150.4 billion in 2025. The NCAA was expected to remit N372.23 billion in 2024 but managed N218 billion. While NAMA has not disclosed its remittance figures, the agency acknowledges that these payments have left it cash-strapped, preventing it from fulfilling its essential responsibilities.

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When you really look at it, government should not be collecting money from us because they have many other sources of revenue and these monies they are collecting is jeopardising our operations.

A NAMA insider described the situation as dire, stating the government appears insensitive to the agencies' operational needs. The insider highlighted the constant need for diesel to power essential communication installations at airports due to epileptic power supply across the nation. Failure to maintain these systems could jeopardize air traffic communication and safety. The source argued that the government should reconsider these deductions, given its numerous other revenue streams, as they jeopardize the agencies' core functions.

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If we do that there will not be communication in the airspace and aircraft will start dropping from the sky.