NCAA Opposes Move to Reduce Ticket Sales Charge Share, Cites Passenger Safety Concerns

The Nigeria Civil Aviation Authority (NCAA) has warned that a proposed amendment to reduce its statutory share of the five per cent Ticket Sales Charge (TSC) could weaken aviation safety oversight and undermine the effective regulation of Nigeria's aviation sector.

The warning comes as the National Assembly considers legislation seeking to reduce the NCAA's share of the Ticket Sales Charge in favour of the Nigerian Airspace Management Agency (NAMA).

Under the current revenue-sharing arrangement, the NCAA collects the five per cent Ticket Sales Charge and distributes the proceeds among key aviation agencies, including NAMA, the Nigerian Meteorological Agency (NiMet), the Nigerian College of Aviation Technology (NCAT) and the Nigerian Safety Investigation Bureau (NSIB).

Speaking with journalists in Abuja, the NCAA's Director of Public Affairs and Consumer Protection, Michael Achimugu, cautioned that reducing the authority's funding would directly affect its ability to carry out its statutory responsibility of regulating aviation safety.

"The NCAA needs more funding, not less. If you weaken the regulator financially, you weaken safety oversight. Aviation regulators all over the world are adequately funded because they are responsible for protecting lives," Achimugu said.

He explained that although the NCAA serves as the industry's primary safety regulator, it already shares a significant portion of the revenue generated from the Ticket Sales Charge with other aviation agencies.

According to him, the charge was originally introduced to reduce the Federal Government's financial responsibility for funding the aviation regulator.

"The concept for the creation of NAMA from the beginning was that it should be self-funded and not dependent on government funding," he said.

He added that while the NCAA was originally expected to be funded directly by the government, the introduction of the Ticket Sales Charge shifted that responsibility, with the authority still distributing part of the proceeds to other agencies.

Achimugu stressed that adequate funding is essential to maintain effective regulatory oversight, noting that aviation inspectors must continuously receive advanced training to remain ahead of the operators they supervise.

He said regulators must constantly update their technical expertise to keep pace with evolving aviation technology and international safety standards.

"The reason aircraft are not falling from the sky today under this administration, unlike in the past, is because of the NCAA," he said.

"The staff of the regulatory agency must be better trained than the service providers they regulate. If inspectors do not possess superior technical knowledge, they cannot effectively enforce safety standards."

He also credited the NCAA's oversight role for Nigeria's strong performance in international aviation safety and security audits as well as improvements in the protection of passengers rights.

According to him, the country's positive safety record and regulatory performance are products of sustained oversight by the authority.

On the ongoing dispute over revenue allocation, Achimugu disclosed that the Minister of Aviation and Aerospace Development, Festus Keyamo, is already engaging relevant stakeholders to resolve the matter.

He urged parties involved to allow the consultations to run their course rather than continue debating the issue publicly.

"The Minister of Aviation and Aerospace Development is already discussing the matter with all parties involved. There is no need for continued public statements aimed at influencing opinion while those discussions are ongoing," he said.

The NCAA also dismissed reports suggesting it owes NAMA outstanding statutory remittances.

Achimugu explained that remittances are processed directly by the Central Bank of Nigeria (CBN), not by the NCAA.

"The NCAA does not make remittances directly to any agency. The CBN handles those payments, and from our checks, the remittances are being processed. Therefore, the issue of the NCAA owing anybody does not arise," he said.

He maintained that agencies with independent revenue-generating mandates should focus on strengthening their own funding sources instead of seeking a larger share of the regulator's statutory allocation.

According to the NCAA, maintaining adequate funding for the country's aviation regulator remains essential to preserving safety standards, regulatory independence and public confidence in Nigeria's aviation industry.