NAMA, NCAA Lock Horns Over Ticket Levy Sharing Formula

A simmering dispute between the Nigeria Airspace Management Agency (NAMA) and the Nigeria Civil Aviation Authority (NCAA) over the allocation of the statutory five per cent Ticket Sales Charge (TSC) has reignited broader concerns about the financial health and strategic direction of the country’s aviation sector.

At the heart of the controversy is a legislative proposal before the National Assembly that seeks to increase NAMA’s share of the levy. While labour unions at the NCAA warn that trimming the regulator’s allocation could weaken safety oversight, industry experts and backers of the bill argue that the current formula fails to reflect the immense operational burden carried by NAMA on a daily basis.

The central question, observers say, is whether the existing revenue-sharing model truly accounts for the responsibilities and financial demands of Nigeria’s air navigation service provider. Many aviation professionals believe it does not.

Unlike the NCAA, which focuses primarily on certification, inspections, and compliance, NAMA is tasked with running Nigeria’s aviation infrastructure round the clock. Every flight into, out of, or through Nigerian airspace depends on its systems, from flight-plan filing to safe landing. The agency provides critical communication, navigation, and surveillance (CNS) services that keep aircraft safely separated and guided.

Though largely invisible to passengers, NAMA’s work is indispensable. Without it, commercial aviation would cease to function.

Modern air navigation has evolved far beyond basic radio communication. It now relies on a sophisticated network of CNS technologies; Instrument Landing Systems, Doppler VOR, Distance Measuring Equipment, radar facilities, Automatic Dependent Surveillance, Broadcast (ADS-B) installations, VHF communication stations, and digital automation systems. Much of this equipment is sited in remote areas with poor public infrastructure, requiring constant power supply (often via diesel generators), regular calibration, software upgrades, and expensive spare parts, all in line with International Civil Aviation Organisation (ICAO) standards.

Proponents of the bill contend that the aviation landscape has changed dramatically since the current sharing formula was introduced. Satellite navigation, digital communications, cybersecurity, performance-based navigation, and integrated automation have fundamentally reshaped global air traffic management. Keeping pace demands continuous investment running into billions of naira. Delays in replacing outdated systems, they warn, only widen Nigeria’s technological gap with more advanced aviation markets.

Unlike agencies with office-based operations, NAMA cannot pause its services due to funding shortfalls. Air traffic controllers, engineers, and communications specialists work in shifts to provide uninterrupted coverage, regardless of traffic volume. Because aircraft cannot operate without these services, supporters argue that the agency’s permanent operational demands justify a reassessment of its funding.

Retired pilot and aviation stakeholder Mohammed Badamosi echoed this view. He said the debate should begin with a realistic evaluation of each agency’s role. NAMA, he noted, maintains a far larger workforce deployed across nearly every airport, while the NCAA operates relatively small regional offices. Beyond personnel costs, NAMA must acquire, install, calibrate, and maintain costly navigation equipment nationwide, ensure uninterrupted power despite rising diesel costs, and provide continuous training for its technical staff.

“Technology is dynamic,” Badamosi said. “If NAMA fails to keep pace with global changes, Nigeria risks being isolated from the international aviation community.” He questioned why the NCAA receives about 56 per cent of the TSC while NAMA gets only 23 per cent, given that the revenue is generated largely from activities driven by NAMA’s operational environment.

The Joint Action Committee of the NCAA has opposed any reduction in the regulator’s allocation. Instead, it has proposed commercialising or partially privatising NAMA to attract private investment, international financing, and capital-market funding for major upgrades, reducing reliance on statutory allocations and government budgets.

Supporters of that model argue that greater financial independence would accelerate the deployment of next-generation surveillance systems, strengthen backups, and cut delays tied to annual budget approvals. But proponents of the National Assembly bill maintain that commercialisation is a long-term solution. Until such reforms take hold, they insist, NAMA needs stronger statutory funding to meet its current obligations.

NAMA currently generates revenue from en-route and overflight charges, non-navigational services, charter flights, air traffic services at state-owned airports, calibration services, obstacle evaluation, aeronautical information publications, and pilgrimage operations. Yet many stakeholders insist these sources are insufficient for the scale of infrastructure renewal required. For them, increasing NAMA’s share of the TSC is not about favouritism but about preventing the deterioration of air navigation infrastructure through chronic underfunding.

Former Commandant of Murtala Muhammed International Airport, Group Captain John Ojikutu (retd.), also called for a balanced review of the revenue-sharing formula. He argued that the allocation should be based on objective parameters such as personnel strength, operational spread, infrastructure ownership, and maintenance obligations.

“Besides NiMet and NSIB, which serve other transport modes, the NCAA and NCAT also generate revenues in their respective areas,” Ojikutu noted. “We must be rational, considering the number of personnel, equipment, their spread across the country, periodic maintenance, and mandatory calibrations. While NCAA service charges are regulated by Nigerian civil aviation regulations, NAMA’s charges are largely guided by ICAO standards. These distinctions matter.”

He urged policymakers to prioritise reforms that accelerate industry growth rather than allowing politics to shape institutional development. Recalling a 2013 IATA assignment in Rwanda, he said he was shocked to learn that the country’s aviation security personnel had been trained by Nigeria’s Federal Airports Authority (FAAN); a testament to Nigeria’s former continental leadership.

“Let us help the industry grow alongside its African and global peers,” Ojikutu said. “Political interference must be reduced. Let agencies have properly constituted management boards in line with enabling laws, so that professionalism, not politics, drives decision-making.”

He expressed concern over the industry’s sluggish progress over the past two decades, noting that while the number of airports has increased, passenger and cargo traffic have not kept pace, and airlines have struggled with short lifespans.

“Having 13 ministers supervising aviation in 26 years is not a sign of sustainable growth,” he said. “What the industry needs is continuity, institutional stability, and long-term planning.”