Aviation agencies under pressure to meet FG's 40% revenue contribution

According to Nairametrics, a source at the Ministry of Aviation asserted that the revenue contribution of the agencies were increased from 25% to 40% by the FG and the fresh ultimatum was implemented in mid-October. 

With the new order, all government agencies are to remit 40% of internally generated revenues (IGRs) to the Federal Government for project execution. While this new order may have affected some federal agencies, just four out of the six agencies in the aviation sector have been affected.

They include the Federal Airports Authority of Nigeria (FAAN), Nigerian Airspace Management Agency (NAMA), Nigerian Civil Aviation Authority (NCAA), and the Nigerian College of Aviation Technology (NCAT), Zaria.

The source further maintained that one of the affected agencies, FAAN was struggling to meet the demands as it has obligations to its staff and other agency engagements to meet up with.

With the 40% contribution, obligations like staff welfare, salaries, and procurement of facilities are only fixed with just the remaining 60% from the IGR the agency makes which according to the source, is not enough to go around.

The increase in the revenue contribution comes amid calls by FAAN to the FG concerning the reduction of the 25% contribution earlier announced.

The Managing Director of FAAN, Capt. Rabiu Yadudu had earlier requested the suspension of the 25% revenue contribution to the Federation Account to enable it to address infrastructure gaps.

Yadudu had made the call to ensure the aviation industry survived the looming threats associated with low funding. He added that reducing the revenue target was the only way to ensure development in the aviation industry.