By Benson Daniel
Aviation expert and former General Secretary of the Aviation Safety Round Table Initiative, John Ojikutu, has called on the House of Representatives to compel the Federal Airports Authority of Nigeria to contribute five per cent of its commercial airport revenue to the fund supporting aviation safety agencies.
Ojikutu made the recommendation in a presentation to the House Committee on Aviation, where he called for a comprehensive review of the existing formula for distributing the five per cent Ticket Sales Charge, Cargo Sales Charge and Chartered Flights Charge.
He argued that the current allocation arrangement among key aviation agencies does not adequately reflect their respective responsibilities, operational requirements and safety obligations.
According to him, the distribution of the aviation safety fund should consider factors including the number of personnel deployed by each agency, the volume of operational equipment, geographical coverage, operating hours and the level of safety responsibilities assigned to each institution.
The expert said the five per cent charges were introduced to provide funding for essential aviation safety services, but questioned whether the existing formula remains appropriate given the changing demands of the sector.
At the centre of his proposal is FAAN, which he said should be regarded as an active participant in the aviation safety funding structure because of the commercial services it operates at airports.
FAAN generates revenue from a wide range of activities, including passenger terminal services, aircraft landing and parking charges, cargo operations, car parks, toll gates, fuel sales, car hire services, land and office rentals, shopping facilities and restaurants.
Ojikutu also identified airline check in counters, aerobridges, VIP lounges and other commercial activities conducted within airport facilities as sources of revenue that should be considered under the proposed arrangement.
He argued that since these activities form part of the aviation ecosystem and benefit from the safety infrastructure maintained by government agencies, FAAN should contribute to the funding of those services.
Under his proposal, FAAN would contribute five per cent of its airport sales service charges into the general pool used to fund aviation safety services.
Ojikutu also recommended a major adjustment to the existing distribution formula, with the Nigerian Airspace Management Agency receiving a larger share because of its extensive operational responsibilities.
He proposed increasing NAMA’s allocation from the current 22 per cent to 40 per cent, citing the cost of maintaining air traffic control, navigation infrastructure and other systems required to keep Nigeria’s airspace safe.
NAMA provides air traffic control and navigational services to commercial, private, government, diplomatic and military aircraft operating within the country’s airspace.
Ojikutu said the agency has a large workforce comprising air traffic controllers, engineers, technologists and administrative personnel, all of whom require adequate funding and equipment to perform their duties effectively.
He warned that inadequate funding could compromise the maintenance, replacement and calibration of critical aviation safety equipment, potentially creating risks for the industry.
For the Nigeria Civil Aviation Authority, Ojikutu recommended reducing its share of the five per cent fund from the current 56 per cent to no more than 40 per cent.
He argued that the NCAA has several other revenue sources apart from the aviation charges and that the existing distribution should therefore be reviewed to ensure that agencies with significant operational responsibilities receive adequate funding.
The proposal comes amid renewed debate over the financing of Nigeria’s aviation agencies, particularly following disputes over the remittance and distribution of the five per cent aviation charges.
Aviation unions have recently raised concerns over the alleged withholding of ticket sales charges by some airlines, arguing that the funds are essential for the operation of aviation agencies.
The debate has consequently placed greater attention on the sustainability of the sector’s funding structure and the need to ensure that funds meant for aviation safety are properly collected and distributed.
Ojikutu’s proposal is expected to generate further discussions among lawmakers, regulators and aviation stakeholders as the Federal Government considers reforms aimed at improving the efficiency and financial sustainability of Nigeria’s aviation industry.
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