Pressure is mounting within Nigeria’s aviation ecosystem as stakeholders intensify calls for a restructuring of revenue remittance rules governing aviation agencies. The debate has been reignited by Managing Director of Flight & Logistics Solutions Ltd, Amos Akpan, who argued that the current financial framework is no longer sustainable for critical aviation institutions.
According to him, the federal government should significantly adjust the remittance structure under the Single Treasury Account to ensure operational survival and infrastructure renewal across the sector. “The federal government should release from the single treasury account 80% of earnings from aviation agencies back to them,” he said. “The current 50% they are receiving is not sufficient to maintain and upgrade their systems and facilities. They are supposed to be cost recovery not revenue generating institutions.”
That position now sits at the centre of a widening debate across Nigeria’s aviation ecosystem, where financial pressure is reshaping relationships between regulators, airlines and service providers. The sector is increasingly marked by rising tensions, cash shortages and fragmented policy responses.
Industry stakeholders argue that the ecosystem is now operating under severe financial contraction. However, the growing disputes between agencies and operators only highlight deeper structural weaknesses rather than isolated conflicts.
At the centre of regulatory coordination is the Nigeria Civil Aviation Authority, which continues to face pushback from airlines over charges, including the controversial 5% Ticket Sales Charge (TSC). Meanwhile, airlines argue that rising operational costs are pushing them toward unsustainable territory.
Mr Akpan described the situation as systemic rather than sectoral. According to him, nearly every stakeholder in the aviation ecosystem is under financial stress.
“It’s not only the NCAA versus airline operators,” he explained. “The entire aviation industry seems to exhibit symptoms of financial contraction. The industry appears to be constricting financially.
Ecosystem Pressure Spreads Across Agencies and Airlines
The financial strain is not isolated to airlines alone. Ground handling companies are reportedly seeking settlement of nearly N9 billion in outstanding payments. At the same time, aviation agencies continue to struggle with operational funding gaps.
The Nigerian Airspace Management Agency has also argued for increased service charges to match rising operational costs, reflecting broader fiscal stress across the ecosystem.
Domestic carriers remain under pressure from fuel price spikes, maintenance expenses and foreign exchange instability. Operators say they are unable to fully transfer costs to passengers without risking reduced demand.
Mr Akpan emphasised that the aviation ecosystem functions through interdependence. Agencies depend on airlines for revenue, while airlines rely on agencies for regulation and safety oversight.
“It’s an ecosystem of interdependence,” he said. “Each member needs the support of one another to remain relevant and sustain its existence.”
Fragmented Fixes Keep the Ecosystem Under Strain
Mr Akpan criticised what he described as short-term interventions that fail to resolve structural issues. He argued that repeated palliatives have not restored profitability across the aviation ecosystem.
“Patch one hole today, another hole bursts tomorrow,” he warned. “The tube should be replaced.”
He listed previous measures such as debt reductions for airlines, repayment negotiations with NCAA, incentives for ground handlers, aircraft leasing proposals and infrastructure rehabilitation. However, he argued that these efforts remain disconnected.
According to him, the real solution lies in attracting long-term investment into the aviation ecosystem rather than relying on temporary financial fixes.
To achieve this, he recommended stronger corporate governance, investment guarantees and improved return-on-investment clarity for investors.
He pointed to aviation growth models in Rwanda, Ethiopia and Ghana as examples Nigeria could study. “Investors and Investment institutions can sniff out areas and projects to place their monies. They understand risks and the environment. Make it attractive for them and they will come. They are investing in Rwanda’s aviation, in Ethiopia’s aviation, in Ghana’s aviation.”
Rethinking the 5% Collection Structure in the Ecosystem
On the 5% Ticket Sales Charge and Cargo Sales Charge, Mr Akpan acknowledged its legal backing under the Civil Aviation Act. However, he questioned its operational design within the ecosystem.
“But collection of money for the agencies is not the core business of an airline. It is not stipulated in the manuals nor in their operations specification. An airline cannot be accessed or audited on that item. It is not their responsibility.
He argued that airlines should not function as collection agents for government agencies, noting that the process adds financial and administrative burdens.
He suggested that agencies should instead deploy direct collection systems or independent financial channels, reducing inefficiencies within the ecosystem.
He referenced how the Federal Airports Authority of Nigeria adapted direct collection methods for passenger service charges as a precedent.
Final Outlook on the Aviation Ecosystem
Mr Akpan also called for digitalisation of processes, improved maintenance infrastructure, expanded operational capacity and reduced cargo bottlenecks.
He stressed that the aviation ecosystem cannot remain viable without coordinated reform across all segments, including regulators, operators and service providers.
Ultimately, he warned that without structural reform and investment inflows, financial strain will continue to define the ecosystem rather than growth.
