Aviation unions, including the National Union of Air Transport Employees and the Air Transport Services Senior Staff Association of Nigeria have appealed to President Bola Tinubu to rethink the 40 per cent Internal Generated Revenue remittance imposed on aviation agencies.
In a joint statement, the unions expressed deep concern over the financial strain caused by the remittance.
The appeal comes after the Federal Government’s decision in October 2022 to increase the compulsory contribution to the federation account by revenue-generating agencies from 25 per cent to 40 per cent.
The PUNCH reported that stakeholders in the sector had urged the Federal Government to reconsider the policy, highlighting the potential negative impact on the industry.
According to unions, the NCAA operates as a cost-recovery agency, not a revenue-generating one.
Drawing attention to the waivers granted to other government agencies facing similar deductions, the stakeholders stressed that the NCAA should also be exempted.
The President in November exempted federal universities from the deduction of 40 per cent of IGR.
The Chairman of NUATE, Drisu Musa, noted that there was a misunderstanding about the functions of the regulatory body, which made the National Assembly invite it to defend its budget.
He explained, ‘’The NCAA is not a revenue-generating agency and what we do is cost recovery. Aeronautical charges all over the world are not revenue. It is for the NCAA to run the affairs of the CAA in the interest of the safety of flight operations.
“They should remove us from the 40 per cent deductions. These 40 per cent deductions have affected our oversight functions and the well-being of our staff. Just as they have done in certain quarters, the NCAA should also be given that waiver.”
Musa added that the Single Treasury Account of the government was doing a lot of damage to the system and the NCAA should be removed.
‘If an operator wants to use a simulator facility abroad, they approach the NCAA and then charge them so that our inspectors can go. Unfortunately, as soon as they pay that money in, the TSA, 40 per cent of facilitating that journey is removed as they consider it revenue.
“We are appealing to the Federal Government under President Tinubu to remove the NCAA in the interest of the safety and security of flight operations from the TSA,” he said.
