The Federal Government’s decision to increase the contributions of aviation agencies to the Treasury Single Account (TSA) from 40% to 50% has sparked significant concerns among operators in the sector. The policy shift, initially introduced by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, aims to enhance revenue generation, fiscal discipline, and transparency in government financial management.
However, this increase has created a tense atmosphere within the aviation industry. Agencies such as the Federal Airports Authority of Nigeria (FAAN), Nigerian Airspace Management Agency (NAMA), and Nigerian Civil Aviation Authority (NCAA) are reportedly struggling to manage their operations under the new financial burden. FAAN, responsible for managing 22 airports, is particularly strained as it faces the challenge of maintaining unviable airports and funding critical infrastructure projects.
NAMA’s Managing Director, Engr. Farouk Ahmed, has also raised concerns, emphasizing that the 50% deduction severely limits the agency’s ability to maintain and upgrade essential safety equipment, which is crucial for ensuring airspace safety. Similarly, the NCAA has expressed that the increased remittance hinders its ability to oversee and regulate the aviation industry effectively.
Industry experts and stakeholders, including the National President of the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN), Mr. Ahmadu Illitrus, have called for the exemption of aviation agencies from this policy. They argue that the financial constraints could lead to compromised safety standards and hinder the development of necessary infrastructure.
The Special Assistant on Media and Communications to the Minister of Aviation and Aerospace Development, Mr. Tunde Moshood, acknowledged the concerns and noted that the minister is advocating for the exemption of these agencies from the TSA policy. He also emphasized that safety remains a top priority in the minister’s agenda and will not be compromised despite the financial challenges.
