Nigeria’s lower legislative chamber, the House of Representatives, has revved up its legislative moves to amend the nation’s aviation sector laws, with a view to providing for a new revenue-sharing formula from the sector’s five per cent Ticket Sales Charge and Cargo Sales Charge are distributed among the sector’s agencies.
The latest legislative move is based on the revenue data presented before lawmakers, which showed that the Nigeria Civil Aviation Authority (NCAA) received an estimated N777bn from the five per cent Ticket Sales Charge andTicket Sales Charge (TSC), Car N352bn from the Cargo Sales Charge in 2026, bringing the combined figure to about N1.129 trillion.
The proposed amendment is expected automate remittances to beneficiary agencies, harmonise conflicting provisions in existing aviation laws and strengthen the financial capacity of institutions responsible for safety, navigation, investigation and other critical services in the industry.
The Speaker of the House of Representatives, Hon. Tajudeen Abbas, who was represented at a recent stakeholders’ forum organized by the sponsor of the amendment bill, Hon. Sada Soli, assured the sector’s groups that the review was aimed at addressing long-standing structural and funding challenges within the aviation industry.
- Advertisement -
Under the existing arrangement, the NCAA has 56 per cent of the five per cent charge, while NAMA receives 22 per cent, the Nigeria Meteorological Agency gets nine per cent, the Nigerian College of Aviation Technology receives seven per cent, and the Nigerian Safety Investigation Bureau gets six per cent.
The proposed formula would reduce the NCAA’s share to 40 per cent, while increasing NAMA’s allocation from 22 per cent to 40 per cent.
While the NCAA is seeking to retain, and potentially increase, its access to the fund to strengthen regulatory and safety oversight, NAMA has argued that its expanding operational responsibilities, infrastructure needs and ageing facilities require a larger share of the same pool.
The amendment bill sponsor further clarified that the proposed reform was not designed to deprive any agency of resources, but to create a more equitable and transparent financial framework for the aviation sector.
Soli said the lawmakers had listened to the concerns raised during the public hearing and were determined to address gaps in the existing legislation with a view to ensuring that Nigeria’s aviation laws and institutions align with international best practices.
He explained: “We are changing the law and changing the name of AIB to NSIB to align with international best practice. We are trying to control the financing and block leakages and corruption.
“When I look at the financial framework of the NCAA, what they presented to the Committee for five per cent TSC for 2026 was N777bn. The five per cent for cargo charges, that is CSC, was N352bn”, the legislator added.
He noted that the figures formed part of the fiscal framework approved by the House Committee on Aviation, linking the proposed reforms to the International Civil Aviation Organisation’s (ICAO’s) emphasis on cost recovery across the aviation ecosystem, stressing that funding should reflect the responsibilities carried by different agencies.
The lawmaker expatiated: “Some of ICAO’s recommendations for aviation are talking about cost recovery for the aviation ecosystem. What we are doing here is to bring equity to balancing investment in the aviation industry. We are not trying to shortchange any agency. We are trying to bring equity to the system.”
But then, in a video posted on social media, the Director-General of the Nigeria Civil Aviation Authority, Capt. Chris Najomo, warned that if the Nigeria Airspace Management Agency (NAMA) continued to agitate for more funds, the agency would be changed to a directorate within the Federal Airport Authority of Nigeria (FAAN).
He said: “If NAMA continues this way to say that they don’t have enough funds to carry out their responsibilities, I will issue an ROI to NAMA and tell them that they will be sent back to FAAN where they came from to be a directorate.”
Already, the proposed amendment of the legislation by the House of Representatives has been generating controversies among aviation agencies, especially the NCAA and the NAMA, which are both clamouring for the review of the revenue sharing formula in the sector.
