NAMA seeks 56% share of ticket sales charge, up from 22%

The Nigerian Airspace Management Agency (NAMA) has asked the National Assembly to more than double its share of the five per cent ticket, charter and cargo sales charge, warning that the current funding formula no longer matches the scale of its safety responsibilities.

Addressing lawmakers at a public hearing on the proposed revision of the statutory sharing formula which took place in the House of Representatives on Thursday,  NAMA’s Managing Director Farouk Umar, appealed on behalf of the agency’s management for the National Assembly to raise NAMA’s share from the existing 22 to 56 per cent. He also called for the harmonisation of conflicting laws governing the agency’s funding, formal recognition of obstacle assessment and WGS-84 aeronautical survey work as chargeable NAMA technical services, the introduction of a transparent and automated remittance system, and stronger accountability measures to accompany any increase.

Umar said NAMA currently receives only 22 per cent of the five per cent charge levied on ticket, charter and cargo sales and that raising this to 56 per cent would not add any new burden on passengers, since the five per cent charge itself would remain unchanged. He said it would simply redirect a larger share of existing revenue toward air navigation infrastructure. He cited NAMA’s 2023 cost which he said is more than N43 billion, covering personnel, capital expenditure and overheads as evidence that funding has failed to keep pace with operational demands. He also noted that per-flight navigation charges have remained unchanged since 2008, even as fuel, foreign exchange, imported equipment and specialist training costs have risen sharply.

He said while the Nigerian Civil Aviation Authority (NCAA) issues and charges for Aviation Height Clearance Certificates, NAMA performs the technical assessment without receiving compensation. NAMA proposed a 90:10 revenue split in its favour for this technical-services component, with NCAA retaining the regulatory portion of the clearance fee.

“Today NAMA receives 22 per cent of the five per cent statutory pool. Let us translate that figure into ordinary terms. On every N1,000 of qualifying ticket, charter or cargo sales, the five per cent charge produces N50. NAMA receives N11 from that N50. Our effective share is therefore 1.10 per cent of the underlying sale. If this number is changed to 56 per cent, NAMA would receive N28 from the same N50. The five per cent charge itself would not increase.

The passenger would not be asked to pay a sixth per cent. The amendment would simply direct a fairer share of the existing pool to the infrastructure that guides the aircraft.

“Why is that necessary? Because the cost of keeping Nigerian airspace safe has outgrown a formula that does not adequately reflect NAMA’s statutory burden. Publicly reported figures for 2023 showed approximately N21 billion in personnel expenditure, more than N12 billion in capital expenditure and more than N10 billion in overheads, a total cost profile exceeding N43 billion.  On behalf of the Management and staff of the Nigerian Airspace Management Agency, I respectfully pray the National Assembly to approve a 56 per cent allocation to NAMA from the existing five per cent pool; harmonise the affected enactments; recognise obstacle assessment and WGS-84 aeronautical survey as chargeable NAMA technical services; establish transparent, automated remittance; and pair the enhanced allocation with firm accountability and oversight.”