The Nigeria Airspace Management Agency (NAMA) has urged the House of Representatives to approve a significant increase in its share of the aviation industry’s statutory five per cent Ticket, Charter and Cargo Sales Charge (TSC), warning that the agency’s current funding model is no longer adequate to sustain the country’s increasingly complex and technology-driven air navigation system.
Presenting the agency’s position at the House Committee on Aviation public hearing on the proposed review of the statutory sharing formula for the TSC and the statutory mandate for obstacle evaluation charges, NAMA Managing Director and Chief Executive, Engineer Farouk Ahmed Umar, argued that the agency bears one of the most capital-intensive and safety-critical responsibilities in Nigeria’s aviation industry but receives only 22 per cent of the statutory revenue pool.
The hearing forms part of ongoing legislative efforts to review the decades-old revenue-sharing arrangement among aviation agencies, a subject that has generated intense debate within the sector in recent years.
Aviation stakeholders have repeatedly argued that the current allocation formula no longer reflects the operational responsibilities, cost structures and safety obligations of the various agencies.
Addressing lawmakers, Umar stressed that NAMA’s request was not intended to diminish the importance of other aviation agencies.
“I appear before you with respect for every institution supported by the five per cent ticket, charter and cargo sales charge. The regulator must be strong. Meteorological services must be dependable. Accident and incident investigation must be independent. Aviation training must be excellent.
“Our submission does not diminish any of these truths. It asks only that the law also recognise, in a practical and sustainable way, the scale of the responsibility placed upon NAMA,” he said.
He noted that air navigation services begin long before passengers board an aircraft, explaining that every flight depends on a complex network of communication systems, surveillance equipment, navigation aids, aeronautical information services, engineers, air traffic controllers and uninterrupted power infrastructure operating simultaneously.
“That is the nature of air navigation services. They are continuous, technology-intensive and unforgiving of delay. A broken office printer can wait until morning. A degraded safety-critical communication link cannot. A postponed meeting may be inconvenient. Deferred radar support, navigation-aid calibration or controller training can reduce the resilience of the national system,” Umar told the committee.
According to the NAMA boss, the agency currently receives only 22 per cent of the five per cent statutory charge imposed on qualifying ticket, charter and cargo sales. Explaining the practical implication, he said that for every ₦1,000 qualifying aviation sale, the statutory levy generates ₦50, of which NAMA receives only N11.
“Our effective share is therefore 1.10 per cent of the underlying sale. If this number is changed to 56 per cent, NAMA would receive N28 from the same N50. The five per cent charge itself would not increase. The passenger would not be asked to pay a sixth per cent. The amendment would simply direct a fairer share of the existing pool to the infrastructure that guides the aircraft.”
He argued that the agency’s responsibilities and operational costs have expanded significantly since the present sharing formula was introduced.
Citing publicly available financial figures for 2023, Umar disclosed that NAMA incurred personnel costs of about N21 billion, capital expenditure exceeding N12 billion and overhead costs of more than N10 billion, bringing its total annual expenditure to over N43 billion.
“These are not abstract numbers. Behind them are controllers, engineers, communication systems, navigation aids, surveillance platforms, power systems, spares, software, calibration, training and facilities spread across our country.”
Umar also lamented that one of NAMA’s principal revenue streams had remained virtually unchanged for almost two decades. He noted that the agency’s navigation charge of approximately N11,000 per flight has remained unchanged since June 2008 despite soaring costs associated with fuel, electricity, foreign exchange, imported equipment, software licences and specialised personnel training.
“The service has had to absorb today’s costs with yesterday’s tariff base. The dedication of our workforce has helped bridge that gap, but dedication is not a substitute for a sustainable funding system.”
The NAMA chief warned that ageing infrastructure, particularly the Total Radar Coverage of Nigeria (TRACON) system, requires substantial investment to prevent obsolescence.
He explained that responsible management requires replacing critical equipment before failure occurs while simultaneously maintaining existing systems throughout the transition.
“As equipment ages, spare parts become harder to obtain and manufacturer support changes. Responsible management does not wait for obsolescence to become failure.”
Beyond the TSC allocation, NAMA also asked lawmakers to formally recognise obstacle assessment and aeronautical survey services as chargeable technical services.
Umar explained that while the Nigerian Civil Aviation Authority (NCAA) issues Aviation Height Clearance Certificates and collects the associated fees, the technical evaluation determining whether proposed structures could interfere with aircraft operations is conducted by NAMA.
According to him, the agency maintains specialised expertise in World Geodetic System 1984 (WGS-84) aerodrome and obstacle surveys, geographical information systems and flight procedure analysis, capabilities that directly support aviation safety.
“NCAA should retain the regulatory component of the Aviation Height Clearance. NAMA should be paid the identified technical-services component for WGS-84 survey validation, obstacle assessment, procedure-impact analysis and field work. In accordance with ICAO’s cost-recovery model, the revenue is to maintain the equipment, data, software and trained professionals that make the clearance technically meaningful.”
The agency is proposing a 90:10 sharing formula in its favour for obstacle evaluation services.
Umar maintained that aviation safety depends on continuous investment rather than emergency interventions after systems begin to fail.
“Safety is not purchased once. It is preserved through a cycle: procure, install, test, train, operate, maintain, calibrate, secure, renew. If any part of that cycle is chronically underfunded, the weakness accumulates quietly.”
He further noted that the global aviation industry is rapidly embracing digital technologies, satellite-based surveillance, performance-based navigation, integrated flight-data systems and stronger cybersecurity measures, developments that require sustained financial investment.
“Nigeria should not merely maintain the airspace of yesterday; it must build the airspace that tomorrow’s traffic will require.”
Seeking to allay concerns over increased funding, the NAMA Managing Director pledged that the agency fully supports stricter financial accountability.
He proposed automated collection and remittance systems, quarterly publication of receipts and projects, annual independent audits, transparent procurement processes and measurable performance indicators.
“We are prepared to report what was received, what it purchased, which milestone was achieved and what improvement the user obtained.”
He also urged lawmakers to harmonise inconsistencies in existing legislation, noting that while the Civil Aviation Act allocates 22 per cent of the TSC to NAMA, provisions of the NAMA Act refer to a 23 per cent allocation.
“The law should speak with one voice. The beneficiaries should be named correctly; the percentages should total 100 per cent; collection and remittance responsibilities should be unambiguous; and the effective date should be clear.”
The review of the TSC sharing formula has become one of the most contentious policy issues within Nigeria’s aviation sector. Several agencies have argued that the existing allocation, established years ago under different operational realities, no longer reflects the financial demands imposed by expanding aviation infrastructure, rising technology costs and international safety obligations.
At the same public hearing, other aviation stakeholders also presented differing positions on the proposed amendments, with agencies advocating allocations based on statutory responsibilities, operational costs and international best practices.
Industry experts note that the International Civil Aviation Organisation (ICAO) encourages sustainable funding for air navigation services through transparent cost-recovery mechanisms, while emphasising that safety-critical agencies must have sufficient financial resources to maintain infrastructure, invest in new technologies and comply with global standards.
Concluding his presentation, Umar appealed to lawmakers to approve NAMA’s request for a 56 per cent allocation from the existing five per cent statutory pool, formally recognise obstacle assessment and WGS-84 aeronautical surveys as chargeable technical services, harmonise relevant aviation laws and establish transparent remittance mechanisms.
“The amendment before you is therefore not merely about dividing revenue. It is about deciding whether the institution entrusted with guiding aircraft will have the stable resources to maintain today’s services and renew tomorrow’s infrastructure.
“Give us the means and hold us to the result. Give Nigerian airspace the resilience it requires and require us to demonstrate that resilience. In doing so, this National Assembly will not simply amend a percentage. It will strengthen the safety, efficiency, sovereignty and future competitiveness of our nation’s airspace.”
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