Aviation agencies at war over tickets’ sale sharing formula

A fresh dispute has erupted within Nigeria’s aviation industry over a proposal to review the sharing formula for the statutory five per cent Ticket Sales Charge (TSC), Daily Trust can report.

The controversy centres on moves to adjust the allocation of the Ticket Sales Charge—a statutory levy collected by airlines on behalf of aviation agencies—from which the Nigerian Airspace Management Agency (NAMA) is reportedly seeking an increased share to address what it describes as chronic underfunding of air navigation services.

The proposal has triggered sharp divisions within the industry, with labour unions aligned with NAMA accusing representatives of the Nigeria Civil Aviation Authority (NCAA) of opposing the review and advocating measures that could undermine the country’s air navigation system.

The NCAA, the regulator of the Nigerian aviation industry, had 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,

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.

It would be recalled that by law, the NCAA collects five per cent TSC and shares among aviation agencies under the extant sharing formula. The NCAA retains 56%; NAMA takes 22%; the Nigeria Meteorological Agency (NiMet) gets 9%, NCAT receives 7% while the Nigerian Safety Investigation Bureau (NSIB) gets 6 %.

However, it was gathered that a new proposal to tinker with the sharing formula is generating disquiet in the industry. The proposal seeks to slash NCAA’s share to 40 per cent while NAMA’s 22% is jerked up to 40 per cent.

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.

However, the NAMA coalition of unions, comprising the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN), the Association of Nigeria Aviation Professionals (ANAP) and the Amalgamated Union of Public Corporations, Civil Service Technical and Recreational Services Employees (AUPCTRE), said the debate should focus on strengthening aviation safety rather than protecting institutional interests.

According to the unions, NAMA requires increased funding to maintain and modernise critical air navigation infrastructure, including communication, navigation and surveillance systems, aeronautical information services, flight calibration equipment and performance-based navigation procedures.

They argued that these systems form the backbone of safe flight operations and require continuous investment if Nigeria is to meet international aviation safety standards.

The unions also rejected suggestions that aspects of Nigeria’s Air Navigation Services (ANS) should be transferred to private operators, describing such proposals as a threat to national security and the country’s sovereignty over its airspace.

Citing Article 1 of the Chicago Convention, which affirms the complete and exclusive sovereignty of every state over the airspace above its territory, the unions insisted that air navigation services are strategic national assets that should remain under government control.

“Any aviation stakeholder advocating the transfer of sensitive air navigation responsibilities, including aeronautical databases, surveillance information, communication networks and strategic operational infrastructure to private commercial interests demonstrates a disturbing misunderstanding of how modern aviation systems operate,” the unions said in a statement.

While the controversy over the sharing formula continues, another dispute has emerged between aviation unions and domestic airlines over the remittance of the Ticket Sales Charge.

The National Union of Air Transport Employees (NUATE) and the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) issued a 14-day ultimatum to airlines to remit outstanding Ticket Sales Charges running into several billions of naira.

The unions alleged that the failure of some airlines to remit the statutory levy has significantly reduced the revenue available to aviation agencies, affecting their ability to discharge safety and regulatory responsibilities effectively.

They warned that continued non-remittance of the charges could jeopardise aviation safety and lead to industrial action capable of disrupting flight operations nationwide.

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