Aviation agencies at loggerheads over sharing formula on airline tickets’ sales

A proposal to review the sharing formula for Nigeria’s statutory five per cent Ticket Sales Charge (TSC) has reportedly sparked a fresh dispute among aviation agencies and labour unions, with concerns over its potential impact on aviation safety and regulatory oversight.

According to a report by DailyTrust, the controversy centres on a move to increase the share of the levy allocated to the Nigerian Airspace Management Agency (NAMA), which says it requires additional funding to maintain and modernise the country’s air navigation infrastructure.

Under the current arrangement, the Nigeria Civil Aviation Authority (NCAA), which collects the charge from airlines, retains 56 per cent of the revenue. NAMA receives 22 per cent, while the Nigerian Meteorological Agency (NiMet), the Nigerian College of Aviation Technology (NCAT) and the Nigerian Safety Investigation Bureau (NSIB) receive nine per cent, seven per cent and six per cent respectively.

However, industry sources said a proposal under consideration would reduce the NCAA’s allocation from 56 per cent to 40 per cent, while increasing NAMA’s share from 22 per cent to 40 per cent.

The proposal has drawn opposition from the NCAA, which warned that reducing its statutory allocation would weaken its ability to perform its regulatory functions and could have serious implications for aviation safety.

The Authority’s Director of Public Affairs and Consumer Protection, Michael Achimugu, said aviation regulators worldwide are adequately funded because of their responsibility for ensuring the safety of air transport.

“The NCAA needs more funding, not less. We are a cost-recovery agency, not a revenue-generating one. Proper funding ensures inspectors remain well-trained and adequately remunerated, reducing the risk of compromise and protecting the flying public,” he said.

Achimugu argued that agencies with independent revenue-generating mandates should strengthen their own funding sources instead of seeking a larger share of the NCAA’s allocation.