Home » FG, reverse the 50 per cent revenue deduction on our agency, NAMA urges

FG, reverse the 50 per cent revenue deduction on our agency, NAMA urges

by John Ojewale
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The Nigerian Airspace Management Agency, or NAMA, has pleaded with the Federal Government to reverse the 50% revenue deduction that has been applied to the agency. NAMA said that if the deduction is kept in place, NAMA may not be able to perform its duties to the fullest extent possible.

Engineer Farouk Umar, the Managing Director of NAMA, stated that the agency’s outdated surveillance systems were a hindrance to NAMA’s ability to maintain and update essential infrastructure, as a result of the 50% revenue decrease.

Restoring the agency’s full revenue allocation, according to Umar’s statement, will allow it to take care of infrastructure requirements, improve operational effectiveness, and guarantee that safety-critical staff members receive ongoing training, among other things.

The statement emphasised that NAMA’s revenue has been significantly reduced by almost half due to financial restrictions, coinciding with an increasing requirement for people and infrastructure expansion.

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The statement reads:

“The safety of our airspace is paramount, and the current financial model is unsustainable. The 50 per cent 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.

“It is crucial to understand that NAMA operates on the principle of cost recovery, as recommended by ICAO. This means all charges are solely meant to be for the recovery of equipment and other costs incurred in service provision.

“The current revenue-sharing formula allocates only 22 per cent of the 5 per cent airfare, contract, charter, and cargo sales charges to NAMA, despite our significant capital investment needs.Nigeria Civil Aviation Authority with less responsibilities as it stands currently is allocated 56 per cent while the NAMA, with all its responsibilities, gets 22 per cent;

“This formula is skewed against NAMA in spite of 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 fulfill our mandate to provide safe and reliable air navigation services across Nigeria’s airspace.

“By reversing the 50 per cent revenue deduction, we can significantly enhance air safety, ensuring that Nigeria’s 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.

“At this juncture, I find it expedient to remind our political leaders that the entire aviation system is about safety as it remains sacrosanct owing to the fact that there is no parking space in the sky. Safety procedures and protocols must be prepared and strictly adhered to while on the ground.”

 

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cc: Vanguard Ng

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