Kasim Sumaina in Abuja
Nigeria Civil Aviation Authority (NCAA) has warned that any move to reduce its statutory revenue could undermine aviation safety by weakening its capacity to carry out effective regulatory oversight.
Director of Public Affairs and Consumer Protection at NCAA, Mr Michael Achimugu, gave warning during a chat with journalists in Abuja. It followed a proposed legislation to reduce NCAA’s share of Ticket Sales Charge (TSC) in favour of Nigerian Airspace Management Agency (NAMA), even though NAMA, by law, should be a self-sustaining agency.
The bill is already under consideration at the National Assembly.
Achimugu warned that such a move, if actualised, could weaken the authority’s financial position and made it unable to meet its regulatory oversight.
He added that safety could be compromised and all travellers, regardless of status, would be at grave risk.
By law, NCAA collects five per cent TSC and remits to NAMA, NiMet, NCAT, and NSIB based on what the law prescribes.
Experts say countries where air navigation service providers (ANSPs), like NAMA, are commercialised or privatised ought not to be funded by the government.
Thus, the concept for the creation of NAMA ab-initio was that it should be self-funded and not dependent on government treasury.
NCAA, as a safety regulator, was to be funded by the government. The five per cent TSC was introduced to absolve the government of that responsibility.
Yet, from this major funding window of the authority, the government still ceded a significant portion to other aviation agencies to aid their revenues.
Achimugu stated, “The NCAA even requires more money. Let’s not forget that the federal government makes deductions from what even comes to the NCAA, in the first place.
“Any way you look at it, this move by a revenue-generating agency to cut even more into the NCAA’s cost recovery is a very unnecessary move. The reason planes are not falling from the sky today under this administration, unlike in the past, is because of the NCAA.”
He added, “The staff of the regulatory agency must be better trained than the service providers they regulate.
“If inspectors do not possess superior technical knowledge, they cannot effectively enforce safety standards.”
He credited NCAA’s regulatory oversight for Nigeria’s strong performance in international aviation safety and security audits, as well as improvements in passenger rights protection.
Achimugu said, “The reason Nigeria continues to excel in safety and security audits is because of the NCAA. The reason passengers’ rights are better protected today is because of the NCAA.”
Achimugu called on stakeholders to carefully consider the implications of reducing 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 NCAA’s statutory allocation, agencies with independent revenue-generating mandates should focus on their own funding streams.
Achimugu stated, “ 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.”
Achimugu highlighted that worried by the development, Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, SAN, had waded in to resolve the issue.
He said, “The Minister of Aviation and Aerospace Development is already on top of these issues, discussing with all parties.
“I would like to call on persons who are always going to the press with inciting statements to desist from doing so. Since the minister is already handling the matter, there is no need to continue trying to influence public opinion.”
The NCAA spokesman also dismissed reports that the regulatory agency was indebted to NAMA, explaining that statutory deductions and remittances are processed directly by Central Bank of Nigeria (CBN), not by NCAA.
According to him, the authority does not operate a separate account from which such remittances are made.
He said, “NCAA does not make remittances directly to the agency. The CBN does so. From our checks, the remittances were being processed. So, the issue of NCAA owing anybody does not arise.”
