Engr. Farouk Ahmed Umar, Managing Director of the Nigerian Airspace Management Agency (NAMA), is urgently appealing to the Federal Government for the reversal of 50% revenue deduction imposed on the agency. Reversing this cut is crucial for enhancing infrastructure, improving operational efficiency, and ensuring continuous training for safety-critical personnel.
Financial Constraints Impact Safety Standards
NAMA, as an Air Navigation Service Provider (ANSP), ensures the safe conduct of flights within Nigeria’s airspace, including the Gulf of Guinea. To fulfill this mandate, NAMA relies on advanced safety-critical equipment and highly trained personnel. However, the current financial constraints, due to a 50% revenue deduction, significantly hamper these efforts.
“This reduction has severely impacted our revenue, cutting it by more than half at a time when the need for infrastructural and personnel development is growing,” Farouk explained. “The safety of our airspace is paramount, and the current financial model is unsustainable. The 50% revenue deduction hinders our ability to maintain and upgrade critical infrastructure, such as our obsolete surveillance systems, which are over a decade old and urgently need replacement.”
Need for Adequate Funding
Farouk emphasized that without adequate funding, NAMA cannot meet the high costs of procuring and maintaining essential equipment or ensuring the continuous training of technical staff, which is vital for maintaining safety standards. He highlighted that NAMA follows ICAO’s cost recovery principle, meaning all charges solely recover equipment and service costs.
Current Revenue Allocation Challenges
Explaining the current revenue-sharing formula, Farouk noted that only 22% of the 5% Ticket and Cargo Sales Charge (TSC/CSC) is allocated to NAMA. “The Nigeria Civil Aviation Authority, with fewer responsibilities, currently gets 56%, while NAMA, with its significant responsibilities, receives just 22%. He said this formula skews against NAMA, jeopardizing its ability to meet both national and international obligations.
Urgent Appeal for Reversal of 50% revenue deduction
Continuing, Farouk stressed the necessity of restoring the full revenue allocation to NAMA. By reversing the 50% revenue deduction, NAMA can significantly enhance the safety of Nigeria’s skies and maintain high safety standards. “We urge all stakeholders to support this necessary change for the future of our aviation sector and the safety of the flying public. At this junction, I find it expedient to remind our political leaders that the entire aviation system is about safety as it remains sacrosanct owing to the fact that there is no parking space in the sky. Safety procedures and protocols must be prepared and strictly adhered to while on the ground,” Umar appealed.
