Farouk Ahmed Umar, the managing director of the Nigerian Airspace Management Agency (NAMA), has pleaded with the federal government to grant the organization more access to internally generated revenue (IGR) in order to improve operations.
Speaking at the agency’s Abuja headquarters, Umar stated that NAMA, the backbone of the aviation sector, has the vital duty of guaranteeing the safe operation of aircraft within Nigerian airspace, which encompasses the Gulf of Guinea.
NAMA recruits and trains staff to meet national and international safety standards as outlined by the International Civil Aviation Organization (ICAO) and maintains advanced safety-critical equipment in order to fulfill this mandate, according to Umar.
However, despite these efforts, NAMA faces significant financial constraints due to the implementation of the 50% revenue deduction, which has impacted the agency’s revenue, cutting it by more than half at a time when the need for infrastructural and personnel development is on the rise.
It is imperative to comprehend that NAMA functions based on the cost recovery principle, in accordance with ICAO recommendations.
This indicates that the only purpose of all fees is to recoup the expenses related to providing the service.
What they’re saying
“The safety of our airspace is of utmost importance, and the existing financial model is not viable,” stated Umar.
“Without enough funding, we can’t guarantee our technical staff’s continuous training—which is essential for keeping safety regulations—or pay the high costs of purchasing and maintaining the equipment we need.
“This shortfall poses a significant risk to air safety,” the statement reads.”Air Navigation Service Providers (ANSPs) should operate solely on a cost-recovery basis,” he stated, citing international best practices. Globally, ANSPs are not intended to be profit-driven enterprises, but rather to be safety-focused organizations.
“The only way NAMA can significantly enhance air safety, is if Nigeria’s skies remain safe and maintain high safety standards,” stated Umar. “That is, reversing the 50% revenue deduction.” He requested the assistance of all stakeholders for this important action in order to guarantee the safety of the general flying public and the future of our aviation industry.
Why this matters?
The existing revenue-sharing model, according to the NAMA chief, is biased against NAMA. NAMA, with its many obligations, receives only 22% of the money, while the Nigeria Civil Aviation Authority (NCAA), which has fewer tasks, receives 56% of the revenue.
Given the significant financial requirements of our projects, Umar contended, “this formula is unfair to NAMA, jeopardizing our ability to meet both national and international obligations.”
Final word
In order to address urgent infrastructure needs, improve operational effectiveness, and guarantee the ongoing training of safety-critical personnel, he said it is imperative that NAMA’s full revenue allocation be restored. He also stated that NAMA can only carry out its mandate to provide dependable and safe air navigation services throughout Nigeria’s airspace if it is given enough funding.
