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NAMA Appeals To FG On Reversal Of 50% Internal Revenue Deduction 

 

 

 

The Nigerian Airspace Management Agency (NAMA), has appealed to the Federal Government, to reverse the 50 per cent internal revenue deduction in the interest of Nigeria’s airspace safety.

A statement by the agency’s Managing Director and Chief Executive, Engr. Farouk Umar, said the deduction hinders NAMA’s ability to maintain, upgrade, and replace its critical infrastructure.

“The safety of our airspace is paramount, and the current financial model is unsustainable. The 50% revenue deduction hinders our ability to maintain and upgrade critical infrastructure, such as our obsolete surveillance systems, which are over a decade old and urgently need replacement.

“Without adequate funding, we can not meet the high costs of procuring and maintaining essential equipment or ensuring the continuous training of our technical staff, which is vital for maintaining safety standards,’ the statement read in part.

He argued that it was crucial to understand that NAMA operates on the principle of cost recovery, as recommended by the International Civil Aviation Organization (ICAO).

“This means all charges are solely meant to be for the recovery of equipment and other costs incurred in service provision,” he said.

Umar argued that the current revenue-sharing formula allocates only 22 per cent of the five per cent airfare, contract, charter, and cargo sales charges to NAMA, despite its significant capital investment needs.

He said, “The Nigeria Civil Aviation Authority with fewer responsibilities as it stands, currently is allocated 56 per cent, while the Nigerian Airspace Management Agency, with all its responsibilities, gets 22 per cent.

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“This formula is skewed against NAMA despite the huge capital requirement of its investment, jeopardising our ability to meet both national and international obligations.

“Restoring the full revenue allocation to NAMA is quite essential. Doing so will enable us to address the critical needs of our infrastructure, enhance operational efficiency, and ensure the continuous training of our safety-critical personnel. With adequate funding, we can fulfil our mandate to provide safe and reliable air navigation services across Nigeria’s airspace.”

By reversing the 50 per cent revenue deduction, he said Nigeria can significantly enhance air safety, nd ensure that its skies remain safe and maintain high safety standards.

“We urge all stakeholders to support this necessary change for the future of our aviation sector and the safety of the flying public,’ he said, adding that he finds it expedient to remind political leaders, that the entire aviation system is about safety, as it remains sacrosanct because there is no parking space in the sky.

“Safety procedures and protocols must be prepared and strictly adhered to while on the ground,” he added.

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