Key points
- NCAA says plans to reduce its share of the Ticket Sales Charge (TSC) could undermine aviation safety oversight.
- The authority warns that weaker funding could affect inspections, regulatory enforcement and technical capacity.
- NCAA says it relies on TSC to finance its statutory oversight responsibilities as a self-sustaining regulator.
- The agency insists it does not owe NAMA, saying remittances are processed directly by the Central Bank of Nigeria.
Main story
The Nigeria Civil Aviation Authority (NCAA) has cautioned that proposals to reduce its statutory share of the aviation sector’s Ticket Sales Charge (TSC) could weaken its regulatory capacity and compromise aviation safety oversight.
The Director of Public Affairs and Consumer Protection, Michael Achimugu, raised the concern during a news conference in Abuja on Tuesday, following moves to reduce the NCAA’s allocation from the TSC in favour of the Nigerian Airspace Management Agency (NAMA).
According to Achimugu, the NCAA was established as a self-sustaining regulator, with the five per cent Ticket Sales Charge serving as a key source of funding for its statutory oversight responsibilities. He noted that legislation seeking to amend the revenue-sharing formula is already before the National Assembly.
He warned that reducing the authority’s financial resources could limit its ability to carry out inspections, certification, surveillance and other regulatory functions essential to maintaining aviation safety.
Achimugu explained that the NCAA is legally responsible for collecting the five per cent TSC before remitting statutory portions to NAMA, the Nigerian Meteorological Agency (NiMet), the Nigerian College of Aviation Technology (NCAT) and the Nigerian Safety Investigation Bureau (NSIB).
He noted that in many countries, air navigation service providers operate on self-generated revenue rather than depending on allocations from aviation regulators, arguing that the NCAA requires adequate funding to sustain effective oversight.
“The NCAA, as a safety regulator, was to be funded by government. However, the five per cent TSC was introduced to reduce that burden. Yet, from this major funding window of the Authority, government still ceded a significant portion to other aviation agencies to support their revenues,” he said.
Achimugu stressed that aviation inspectors must possess higher technical competence than the operators they supervise, making continuous training and adequate remuneration essential to maintaining safety standards.
He credited the authority’s regulatory work for Nigeria’s improved performance in international aviation safety and security audits, as well as stronger protection of passengers’ rights.
“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,” he said.
The NCAA spokesman urged agencies with independent revenue-generating mandates to strengthen their own funding mechanisms rather than relying more heavily on the authority’s statutory allocation.
“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,” he added.
Achimugu also dismissed reports that the authority was indebted to NAMA, explaining that remittances are processed directly by the Central Bank of Nigeria (CBN) in accordance with statutory procedures.
He said the Minister of Aviation and Aerospace Development, Festus Keyamo, had already intervened in the matter and appealed to stakeholders to allow the minister’s engagement process to continue without actions capable of influencing public opinion.
The issues
The NCAA argues that the proposed amendment to the Ticket Sales Charge revenue-sharing formula goes beyond funding allocation and could directly affect aviation safety regulation. The authority says adequate funding is necessary to sustain inspections, certification, surveillance, personnel training and enforcement activities, warning that weakening the regulator’s financial capacity could have wider implications for safety oversight.
What’s being said
“The NCAA needs more funding, not less. We are a cost-recovery agency, not a revenue-generating one.” — Michael Achimugu, Director of Public Affairs and Consumer Protection, NCAA
“The reason Nigeria continues to excel in safety and security audits is because of the NCAA.” — Michael Achimugu, Director of Public Affairs and Consumer Protection, NCAA
What’s next
The proposed amendment to the Ticket Sales Charge allocation remains before the National Assembly, while stakeholders await further consultations led by the Minister of Aviation and Aerospace Development on the revenue-sharing dispute among aviation agencies.
Bottom line
The NCAA says preserving its statutory funding is essential to maintaining effective aviation safety oversight, arguing that any reduction in its revenue could weaken regulatory capacity and ultimately affect passenger safety.
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