Reps Move to Restructure Aviation Revenue Sharing as Sector Generates N1.13tn

The House of Representatives has begun moves to reform Nigeria’s aviation laws and review how revenue generated from the sector is shared among key aviation agencies.

The proposed amendment follows revelations that the Nigeria Civil Aviation Authority (NCAA) was projected to receive about N777 billion from the five per cent Ticket Sales Charge (TSC) and N352 billion from the Cargo Sales Charge (CSC) in 2026, bringing the combined revenue to approximately N1.13 trillion.

Under the existing revenue-sharing arrangement, the NCAA receives 56 per cent of the five per cent charge, while the Nigeria Airspace Management Agency (NAMA) gets 22 per cent. The Nigeria Meteorological Agency receives nine per cent, the Nigerian College of Aviation Technology seven per cent, and the Nigerian Safety Investigation Bureau six per cent.

However, lawmakers are proposing a new formula that would reduce the NCAA’s allocation to 40 per cent while increasing NAMA’s share to 40 per cent.

The proposed reform has generated disagreement between the NCAA and NAMA, with both agencies presenting competing arguments over the appropriate distribution of the funds.

NCAA officials argue that the agency requires adequate funding to strengthen aviation regulation and safety oversight, while NAMA maintains that its growing responsibilities, infrastructure requirements and ageing facilities justify a larger allocation.

Speaking during a stakeholder engagement, Sada Soli, the lawmaker sponsoring the amendment bill, said the proposed changes were intended to create a fairer and more transparent financial framework rather than deprive any agency of funds.

Soli said the reforms would also harmonise conflicting provisions in existing aviation laws, automate revenue remittances and align Nigeria’s aviation institutions with international best practices.

He explained that the amendment would also change the name of the Accident Investigation Bureau (AIB) to the Nigerian Safety Investigation Bureau (NSIB), in line with international standards.

According to him, the huge amount of money generated through TSC and CSC makes it necessary to strengthen accountability and ensure that the funds are properly channelled into aviation infrastructure, safety and other critical services.

The lawmaker also cited the International Civil Aviation Organisation’s emphasis on cost recovery, arguing that revenue distribution should reflect the responsibilities and operational needs of the different agencies.

The dispute intensified after NCAA Director-General Chris Najomo reportedly warned that NAMA could be returned to the Federal Airports Authority of Nigeria (FAAN) and reduced to a directorate if it continued demanding a larger share of the revenue.

Retired Group Captain John Ojikutu, however, criticised the position, arguing that NAMA performs essential air navigation and safety functions that are fundamental to the operation of airlines and airports.

With more than N1.1 trillion in aviation revenue at stake, the proposed legislative changes are expected to attract significant attention as lawmakers examine the finances, responsibilities and funding needs of Nigeria’s aviation agencies.

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