United Nigeria Airlines Chairman, Professor Obiora Okonkwo, has renewed calls for a review of the aviation remittance policy, saying government deductions from industry revenues continue to hinder growth and development across the sector.
Okonkwo made the appeal during the unveiling of the airline’s newly acquired Boeing 737-800NG aircraft in Lagos. He said retaining aviation revenues within industry agencies would help address longstanding operational and infrastructure challenges.
According to him, the aviation remittance structure leaves regulators and service providers with insufficient resources to carry out their responsibilities effectively.
“I am hopeful that government, in view of that report, will want to consider a number of issues that we have consistently raised over the years,” Okonkwo said.
How Aviation Remittance Can Ease Industry Pressures
He stressed that revenues generated by aviation agencies should remain available to those agencies rather than being heavily deducted and transferred elsewhere.
“We are telling the government that until aviation revenues are retained within the aviation agencies, the sector will continue to face serious challenges. The money accrued to the NCAA should remain in NCAA accounts. The money accrued to FAAN should remain in FAAN accounts,” he stated.
Okonkwo added that these funds are essential for regulators and service providers to perform their statutory duties and maintain industry standards.
Aviation Remittance and Sector Growth
The United Nigeria Airlines chairman argued that the current aviation remittance arrangement weakens the financial capacity of critical aviation institutions.
“I say this because it is no secret that a significant percentage of the revenue generated by these agencies is remitted to the Federal Government. This leaves the agencies with limited resources to perform their duties and develop critical infrastructure,” he said.
According to him, retaining more industry-generated revenue would strengthen oversight, improve facilities and support safer operations across the aviation value chain.
He maintained that aviation agencies need predictable funding to execute projects, acquire equipment and address growing operational demands. Therefore, reviewing the aviation remittance framework has become necessary for sustainable development.
Okonkwo further noted that aviation contributes far beyond passenger transportation. He said the industry supports strategic sectors that are vital to the Nigerian economy.
“Consider the role aviation plays in the economy. Much of the oil and gas industry, particularly offshore operations, depends on aviation services to transport personnel and equipment. Without aviation support, many of these activities would be difficult, if not impossible, to sustain,” he explained.
He said discussions about aviation should not be limited to airlines alone because several sectors rely heavily on air transport services.
“Therefore, when we talk about aviation, we are not merely talking about a business sector. We are talking about a critical component of national development. This includes all the operators and service providers whose activities support key sectors of the economy,” he added.
Meanwhile, Okonkwo also called for improved access to affordable financing for domestic operators. He noted that high borrowing costs continue to constrain expansion and fleet acquisition efforts.
“In conclusion, we would also like to see policies that provide access to single-digit interest loans for aviation operators. As things stand today, loans from commercial banks are extremely expensive, making it difficult for operators to invest and grow their businesses,” he said.
He expressed confidence that addressing aviation remittance concerns and improving financing options would unlock greater opportunities for the industry.
“If these issues are addressed, the aviation industry will be in a much stronger position to contribute to economic growth and national development,” Okonkwo concluded.
