By Chinelo Obogo
The Nigeria Airspace Management Agency (NAMA) has expressed hope that the Federal Government would exempt it from remittance of 40 percent of its Internally Generated Revenue (IGR) into the Treasury Single Account (TSA).
At a media chat with aviation reporters in Lagos recently, the Managing Director, NAMA, Mr. Tayib Odunowo said, the 40% remittance is hindering the agency from optimal performance as this means it would be struggling to generate funds to meet their needs.
“We want to grow and we need that support from the government and we plead, if that could occur, honestly we would thrive and that is what we have been agitating because it is really affecting us, it is strangulating us,” he said.
The Director, Finance, Mr. Hamzat Balogun, who elaborated more on the funding challenge explained that, even after the 40% remittance, the Federal Government also collects from their 60% through other means like Value Added Tax, VAT, Stamp duty and Withholding Tax.
“It is going to be a welcome development serious, being on the TSA is the biggest problem we have. If you pay me one naira today, government will deduct 40% from that one naira and at the end of the day what comes to NAMA is just 60% of that and when you want to expend that 60% you are still going to pay VAT, you pay withholding tax, pay stamp duty so the value you are going to get from that money is less that even the 60%. So, if we are removed from the TSA which means, we can manage our resources the best way possible,” he said.
This is coming after a retired deputy director in the finance department of the Federal Airports Authority of Nigeria (FAAN), Mr. Philip Emeto, said that the agency which is responsible for managing 26 airports, is cash-strapped and can barely carry out capital projects. Emeto said that FAAN is finding it difficult to carry out capital intensive projects like airport infrastructure rehabilitation, upgrade of terminals, airfield lighting, acquisition of security equipment and others that are critical to the smooth running of airports in line with the stipulations of the International Civil Aviation Organisation ( ICAO).
He also said that at the moment, FAAN is expected to send 40 percent of its Internally Generated Revenue (IGR) to the Federal Government from source through the Treasury Single Account (TSA) and their remaining 60 percent income is used to carry out projects as well as pay salaries.