NCAA should be exempted from 50% IGR deduction –Achimugu

Following federal government’s pronouncement mandating revenue generating agencies to remit 50 per cent of their proceeds to federal coffers, many establishments have frowned at the order, saying it was operationally hurtful.

In the aviation industry, several stakeholders have, at different fora, urged the federal government to exempt agencies like the Nigeria Civil Aviation Authority (NCAA) and the Nigerian Airspace Management Agency (NAMA) from the deduction, considering their responsibilities in ensuring the safety of Nigeria’s airspace.

The Director of Public Affairs and Consumer Protection in the NCAA, Michael Achimugu, while justifying the push for NCAA’s exemption,  told Daily Sun that the 50% remittance was worrisomely affecting the agency’s ability to oversee the aviation industry effectively. He said while the NCAA does not generate revenue, its duty is to recover costs associated with services provided to airlines and other 50stakeholders and this recently imposed 50% remittance requirement on recovered funds and Internally Generated Revenue significantly impacts the NCAA’s operations.

50% remittance of funds to FG has impacted NCAA’s operations

Achimugu explained that unlike other agencies that keep half of their collected revenue, the NCAA must also share funds with other entities after remitting to the government and this leaves the agency with only 28% of the recovered costs, hindering its ability to fulfill its critical role of safety oversight and regulation. He urged the Federal Government to reconsider this policy and exempt the agency from the 50% deduction to ensure it has sufficient resources to maintain safety standards within the Nigerian aviation industry.

“The NCAA does not generate revenue, what we do is called cost recovery and not revenue generation. We recover cost for services rendered to operators and stakeholders. The 50 percent deduction is already affecting our operations because our case is different from agencies in the sense that we remit money to them. By the government takes 50 percent, we remit to other agencies and all the calculations are completed, what comes back to the NCAA is 28 percent of the cost recovered by us. Our sister agencies remit 50 percent of what they get to the government and they get to keep the remaining 50 percent but we don’t get to do that because we also have to remit to other agencies. This has the ability to hinder how effectively oversee and regulate the industry and could potentially compromise safety standards. We are hoping that the authorities would look into this issue and exempt the NCAA from this deduction,” he said. 

Airlines still owe NCAA

Achimugu said several airlines have outstanding debts with the NCAA and that the Acting Director General previously mentioned a ‘No Pay, No Service’ policy to address the issue where he said the goal is to find a sustainable solution that ensures airlines meet their financial obligations.

“There are a number of airlines that owe the agency massive sums of money and it is why you would recall that the acting Director General of the NCAA mentioned earlier that we would adopt a policy of ‘No pay, no service’. It is sad to mention that that there are some airlines that do not have the right character to pay what they owe,” he said.

On the issue of operators who owe still staff salaries, pensions, gratuities, Achimugu said, “Our legal department and mine which is consumer protection have received complaints in this regard and the DG has instructed us to investigate the issues and bring out findings. Bear in mind that we can only take action on issues that have been officially reported to us. We are currently investigating operators who are owing salaries, pensions and gratuities.”

Setting up of taskforce not an indictment on NCAA

Reacting to sentiments that the creation of a task force by the Minister of Aviation to investigate the alleged operations of illegal charter flights is an indictment on the NCAA, Achimugu said a task force allows for efficient collaboration between the NCAA and other aviation agencies and is a streamlined approach to tackle pressing concerns.

He said for instance, reports from passengers of harassment or extortion at security points does not reflect poorly on the NCAA as the agency investigates such allegations and recommends action to FAAN to address the misconduct.

“The setting up of a task force cannot be an indictment on the NCAA because when a task force is being set up, you would know that it is an inter-agency issue. We are the regulators but there are other agencies that are involved in the processes around the airport. For instance, we regulate security at the airport but we do not have security personnel who are physically present at the airport that is why we regulate the aspect of the Federal Airport Authority of Nigeria.

“Sometimes if there are loopholes, the minister has a right to set up a task force and that that task force also includes NCAA personnel. Task forces are adhoc bodies and perhaps there are flurry of activities that needs to be investigated across the agencies and the best way to ensure synergy is to set up a task force otherwise there would be too much bureaucracy. It would save more time, energy and money if a task force exists. There are allegations of illegal charter operations and that is why a task force was set up not to punish anyone because nothing has been verified.

“The NCAA regulates the industry but there have been many reports by passengers of airport personnel harassing and extorting money from them at scanning points. Would you say that because we regulate the industry, it is an indictment on the NCAA that a security personnel from another agency committed such a crime? In trying to solve those problems, our duty is to investigate and recommend to those agencies on why that particular staff should be recalled from the airport. But you cannot say it is an indictment on the NCAA,” he said.