NUATE calls for review of 50% IGR deduction policy

KEY POINTS

• The National Union of Air Transport Employees (NUATE) has appealed for a review of the 50% Internally Generated Revenue (IGR) deduction from aviation agencies into the Treasury Single Account (TSA).
• Affected agencies include FAAN, NCAA, NAMA, and NCAT, with the union arguing that the policy hinders infrastructure upgrades and world-class positioning.
• NUATE President, Comrade Ben Nnabue, also called for a mandatory four-year review of navigation charges by NAMA to ensure agency survival and personnel training.
• The union confirmed that an agreement regarding the Enugu Airport concession protects workers, ensuring they remain FAAN employees with full benefits.

MAIN STORY

The National Union of Air Transport Employees (NUATE) has officially called for the federal government to reconsider the 50% deduction of Internally Generated Revenue (IGR) from key aviation agencies. Speaking in an interview with the News Agency of Nigeria (NAN) on Saturday, NUATE National President Comrade Ben Nnabue argued that while recent developments in the industry are commendable, the current TSA policy restricts the funds necessary to manage airports and upgrade infrastructure to international standards.

Nnabue specifically identified the Federal Airports Authority of Nigeria (FAAN), Nigeria Civil Aviation Authority (NCAA), Nigerian Airspace Management Agency (NAMA), and the Nigerian College of Aviation Technology (NCAT) as the bodies most impacted. He emphasized that since world-class airports are typically government-built, the agencies need to retain more of their earnings to transition Nigeria’s aviation facilities into the global ecosystem.

Beyond funding, the union highlighted improvements in the Condition of Service (CoS) for workers. Negotiations have been signed off for major agencies and airlines including Emirates, Ethiopian, SAHCO, and NAHCO. However, Nnabue raised concerns regarding the freedom of association, urging certain airlines to stop denying workers the right to join unions. He warned that “bottled up” workers who cannot speak out create significant security and safety risks within the airport system.

WHAT’S BEING SAID

• “Where 50 per cent of the agencies’ revenue is taken off, it could be difficult to generate funds for requisite improvement… so that the money we make in the airport will be used to manage the airports,” stated Comrade Ben Nnabue, National President of NUATE.
• “When you run a system like in an airport and workers cannot speak up, it is dangerous and a security and safety issue because they are bottled up.”
• Nnabue commended Festus Keyamo (SAN) and Mrs. Olubunmi Kuku for “rebranding the Murtala Muhammed International Airport (MMIA).”

WHAT’S NEXT

• The union expects a response from the Ministry of Aviation and the Ministry of Labour regarding the petition against airlines restricting freedom of association.
• Further discussions are anticipated between the government and aviation stakeholders to determine if the 50% IGR deduction can be lowered to support specific “world-class” infrastructure projects.
• NAMA may begin internal assessments for a new navigation charge framework if the four-year review cycle proposal gains regulatory traction.

BOTTOM LINE

The Bottom Line is that while Nigeria’s airports are seeing a visual rebrand, the workers’ union believes the financial engine behind these facilities is being stalled by the 50% IGR deduction. For NUATE, the path to a world-class aviation sector requires both the financial freedom to build and the labor freedom for workers to speak up without fear.