Stakeholders Urge Nigeria's Aviation Authority to Seek New Funding Amidst Financial Crisis

Industry stakeholders are pressing the Nigeria Civil Aviation Authority (NCAA) to diversify its income sources and secure additional funding to avert a looming financial crisis. They argue that relying solely on existing revenue streams, particularly airline obligations, is unsustainable as the agency's operational costs increase.

Stakeholders point out that as the aviation sector expands, the NCAA faces rising expenses related to personnel, training, and regulatory functions. Inflation and high exchange rates have already strained airline profitability, making it difficult for carriers to consistently meet their financial commitments to the NCAA. Beyond the 5% Ticket Sales and Cargo Sales Charge, which is shared among several aviation agencies, other fees paid by airlines are not sufficient to cover the NCAA's growing budget.

“

It would be precarious for NCAA to continue to depend on airlines financial obligations.

The situation has become critical, exacerbated by the Middle East crisis which impacted airlines' ability to pay charges due to soaring aviation fuel costs. Compounding these financial pressures, the National Assembly is considering a proposal to reduce the NCAA's share of the 5% Ticket Sales Charge from 56% to 40%, while increasing the Nigeria Airspace Management Agency's (NAMA) share. Industry experts fear this reduction could impair the NCAA's capacity to effectively regulate the industry and potentially compromise safety standards.

Captain Ado Sanusi, CEO of Aero Contractors, echoed these concerns, suggesting that the NCAA should explore revenue avenues beyond airline payments. He highlighted that for over two decades, both NCAA and NAMA have been funded primarily through the 5% Ticket Sales Charge and Cargo Sales Charge, a system that has historically led to financial instability and payment defaults by airlines.

“

This has produced chronic crises: airlines defaulting on remittances.