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NAMA Seeks 56% Share of Aviation Revenue, Cites Rising Airspace Safety Costs

The Nigerian Airspace Management Agency (NAMA) has appealed to the National Assembly to increase its allocation from the statutory five per cent aviation revenue pool from 22 per cent to 56 per cent, arguing that the current funding formula no longer reflects the growing financial demands of managing Nigeria’s airspace safely.

Presenting the agency’s position at a public hearing organised by the House of Representatives Committee on Aviation, NAMA Managing Director, Engr. Farouk Ahmed Umar, said the proposed NAMA 56% share would not increase the existing Ticket Sales Charge (TSC) but would simply redistribute the available revenue to better support the country’s air navigation service provider.

He explained that maintaining safe airspace requires continuous investment in critical infrastructure, skilled personnel and modern technology, noting that the agency’s responsibilities begin long before an aircraft takes off and continue until it lands safely.

According to Umar, air traffic controllers, engineers, surveillance systems, navigation aids, communication networks and backup power infrastructure must operate seamlessly every minute, making air navigation services one of the most technology-intensive and safety-sensitive aspects of the aviation industry.

He disclosed that NAMA recorded operational expenses exceeding ₦43 billion in 2023, comprising about ₦21 billion in personnel costs, more than ₦12 billion in capital expenditure and over ₦10 billion in overhead expenses.

Despite the rising costs, Umar noted that the agency’s navigation charge has remained at ₦11,000 per flight since June 2008, even as inflation, foreign exchange fluctuations, electricity costs, software licensing, equipment maintenance and specialised training expenses have risen significantly.

He also warned that the country’s Total Radar Coverage of Nigeria (TRACON) system is ageing and requires urgent investment in modernisation, adding that global aviation is increasingly dependent on digital technologies, satellite-based surveillance and stronger cybersecurity systems.

As part of the proposed reforms, Umar urged lawmakers to recognise obstacle assessment and WGS-84 aeronautical surveys as chargeable technical services performed by NAMA, arguing that the agency should receive direct payment for specialised technical work such as survey validation, obstacle analysis and procedure-impact assessments.

The NAMA boss further assured lawmakers that increased funding would be accompanied by greater transparency, including automated revenue collection, quarterly financial disclosures, annual independent audits and measurable performance reporting.

He also called for the harmonisation of conflicting provisions in Nigeria’s aviation laws, noting that while the Civil Aviation Act allocates 22 per cent of the statutory revenue pool to NAMA, the NAMA Act references a 23 per cent allocation. According to him, a unified legal framework would eliminate ambiguity and ensure a transparent revenue-sharing structure for all aviation agencies.

While acknowledging that any adjustment to the allocation formula could generate concerns among other agencies, Umar maintained that funding decisions should be guided by statutory responsibilities, operational risks and audited financial requirements rather than historical allocation percentages.

Meanwhile, the African Aviation and Aerospace University (AAAU), Abuja, also appealed to the National Assembly to become a statutory beneficiary of the five per cent Ticket Sales Charge.

The university proposed a minimum allocation of 10 per cent of the revenue, arguing that sustainable investment in aviation education, research and manpower development is essential for the long-term growth of Nigeria’s aviation sector.

Presenting the institution’s position, Acting Vice-Chancellor Mustapha Abdullahi said the university was established to produce highly skilled professionals, including air traffic managers, aeronautical engineers, aviation safety experts, meteorologists, airport managers and aerospace specialists needed to sustain Nigeria’s aviation industry.

He urged lawmakers to ensure that future aviation funding supports not only operational agencies but also the development of the skilled workforce required to keep Nigeria’s aviation sector competitive and safe.

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