The Nigeria Civil Aviation Authority (NCAA), the regulator of the Nigerian aviation industry, has warned about the consequences of preying on its revenue, saying the action would cripple its operations and jeopardise aviation safety.
The Director of Public Affairs and Consumer Protection at the NCAA, Mr Michael Achimugu, stated this in a chat with journalists in Abuja, following attempts to reduce the NCAA’s share of the Ticket Sales Charge (TSC) in favour of the Nigerian Airspace Management Agency (NAMA), even though NAMA, by law, should be a self-sustaining agency. The Bill is already under consideration at the National Assembly.
He warned that such a move, if actualised, could further weaken the Authority’s financial position and render it unable to meet its regulatory oversight, adding that safety would be compromised and all travellers, regardless of status, would be at grave risk.
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Recall that by law, the NCAA collects 5 percent TSC and remits to NAMA, NiMet, NCAT and NSIB based on what the law prescribes.
Experts say countries where air navigation service providers (ANSPs) like NAMA are commercialised or privatised are not funded by the government.
Thus, the concept for the creation of NAMA ab-initio was that it should be self-funded and not dependent on govt treasury. The NCAA, as a safety regulator, was to be funded by the government. However, the 5 percent TSC was introduced to absolve the government of that responsibility. Yet, from this major funding window of the Authority, the government still ceded a significant portion to other aviation agencies to aid their revenues.
“The CAA even requires more money, first of all, let’s not forget that the federal government makes deductions from what even comes to the CAA in the first place. Any way you look at it, this move by a revenue-generating agency to cut even more into the CAA’s cost recovery is a very unnecessary move, … The reason planes are not falling from the sky today under this administration, unlike in the past, is because of the CAA” the Director explained.
“The staff of the regulatory agency must be better trained than the service providers they regulate. If inspectors do not possess superior technical knowledge, they cannot effectively enforce safety standards,” he said.
He credited the NCAA’s regulatory oversight for Nigeria’s strong performance in international aviation safety and security audits, as well as improvements in passenger rights protection.
“The reason Nigeria continues to excel in safety and security audits is because of the NCAA. The reason passengers’ rights are better protected today is because of the NCAA,” he stated.
Achimugu called on stakeholders to carefully consider the implications of reducing the NCAA’s financial capacity, saying aviation regulators across the world are adequately funded because of the critical role they play in safeguarding lives.
He maintained that rather than seeking a larger share of the NCAA’s statutory allocation, agencies with independent revenue-generating mandates should focus on their own funding streams.
“The NCAA needs more funding, not less. We are a cost-recovery agency, not a revenue-generating one. Proper funding ensures inspectors remain well-trained and adequately remunerated, reducing the risk of compromise and protecting the flying public,” he said.
Mr. Achimugu highlighted that worried by this development, the Hon, Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, SAN, has waded in to resolve the issue.
Achimugu said: “The Honourable Minister of Aviation and Aerospace Development is already on top of these issues, discussing with all parties.
“I would like to call on persons who are always going to the press with inciting statements to desist from doing so. Since the minister is already handling the matter, there is no need to continue trying to influence public opinion.”
The NCAA spokesman also dismissed reports that the regulatory agency was indebted to NAMA, explaining that statutory deductions and remittances are processed directly by the Central Bank of Nigeria (CBN), not by the NCAA.
According to him, the authority does not operate a separate account from which such remittances are made.
He said, “The NCAA does not make remittances directly to the agency. The CBN does so. From our checks, the remittances were being processed. So, the issue of NCAA owing anybody does not arise,” he stated.
