NAMA, NCAA Clash Over Proposed Review Of Ticket Sales Charge Sharing Formula
The Nigeria Airspace Management Agency (NAMA) and the Nigeria Civil Aviation Authority (NCAA) are at the centre of a dispute over a proposal to review the sharing formula of the statutory five per cent Ticket Sales Charge (TSC), a development that has sparked debate across Nigeria’s aviation sector.
The proposal, currently before the National Assembly, seeks to increase NAMA’s share of the levy, with supporters arguing that the agency’s expanding operational responsibilities and rising infrastructure costs justify greater funding.
The controversy has drawn opposition from labour unions within the NCAA, who warn that reducing the regulator’s allocation could weaken aviation safety oversight and affect its ability to carry out certification, inspections and enforcement duties effectively.
Industry stakeholders backing the proposal argue that NAMA bears the greater operational burden in the aviation ecosystem, providing round-the-clock air navigation services that enable the safe movement of aircraft across Nigerian airspace.
The agency operates and maintains critical Communication, Navigation and Surveillance (CNS) infrastructure, including radar systems, Instrument Landing Systems, VHF communication facilities, Automatic Dependent Surveillance-Broadcast (ADS-B) installations and other navigation equipment nationwide.
Supporters of the bill note that maintaining these systems requires significant investment in technology, regular calibration, software upgrades, spare parts, diesel-powered facilities and continuous training of technical personnel in line with International Civil Aviation Organisation (ICAO) standards.
Retired pilot and aviation stakeholder, Mohammed Badamosi, said the current revenue-sharing formula does not adequately reflect the financial demands placed on NAMA.
According to him, while the NCAA receives about 56 per cent of the Ticket Sales Charge, NAMA receives approximately 23 per cent despite its nationwide operational responsibilities.
He questioned the basis for the existing formula, arguing that the agency responsible for managing air navigation infrastructure should receive funding that matches its operational obligations.
However, the Joint Action Committee of the NCAA has opposed reducing the regulator’s allocation, suggesting that NAMA should instead be commercialised or partially privatised to attract private investment, international financing and capital market funding for infrastructure upgrades.
Proponents of that approach believe greater financial independence would enable NAMA to modernise its facilities without depending heavily on statutory allocations and government budgets.
Supporters of the National Assembly proposal, however, maintain that while commercialisation may be a long-term solution, increased statutory funding remains necessary to sustain current operations and prevent deterioration of critical air navigation infrastructure.
Former Commandant of the Murtala Muhammed International Airport, Group Captain John Ojikutu (retd.), also called for a balanced review of the revenue-sharing arrangement.
He said the allocation should be based on objective factors such as personnel strength, operational spread, infrastructure ownership, maintenance obligations and mandatory equipment calibration.
Ojikutu noted that agencies such as the Nigerian Meteorological Agency (NiMet), the Nigerian Safety Investigation Bureau (NSIB), the NCAA and the Nigerian College of Aviation Technology (NCAT) also generate revenue through their statutory functions, stressing that these distinctions should be considered when determining the sharing formula.
He further urged policymakers to prioritise reforms that would strengthen the aviation industry, reduce political interference and ensure agencies are managed professionally through properly constituted governing boards.
Expressing concern over the pace of growth in the aviation sector, Ojikutu said Nigeria had not achieved the expected expansion in passenger traffic, cargo operations or airline development over the past two decades despite an increase in the number of airports.
He stressed that long-term planning, institutional stability and sustained investment remain essential for the country’s aviation industry to compete effectively with its counterparts across Africa and globally.
