Every time an attempt is made to review the Civil Aviation Act, the aviation industry in Nigeria is always thrown into an unwarranted and divisive war of acrimony over the statutory five per cent Ticket Sales Charge [5% TSA] and five per cent Cargo Sales Charge (5 per cent CSC) collections accruing to the Nigeria Civil Aviation Authority.
NCAA, according to the Civil Aviation Act of 2022, is solely responsible for the regulation of civil aviation in Nigeria.
In addition, the agency was granted autonomy to carry out its oversight responsibilities of the industry unhindered. It says, “the authority shall not submit its decision for approval of or be bound by the decision or recommendation of any person, body or organisation but shall be guided by safety, security and public interest considerations.’’
Historically speaking, the first civil aviation policy came into being in 1989. This policy recommended and birthed the Federal Civil Aviation Authority in 1990. It was scrapped under the military administration in August 1995 while the regulatory role of FCAA was transferred to the Federal Ministry of Aviation.
The decision was not in line with the International Civil Aviation Organisation Standards and Recommended Practices, following which Nigeria was blacklisted.
To restore the country to the path of standard practices, the Nigeria Civil Aviation Authority was established in 1999 and became operational in the year 2000.
For its autonomy status to be effective, the funding was also spelt out in the Civil Aviation Act 2022 at Part V Financial Provisions. The Act at Part V Sub section17 [1] says: There shall be established for the Authority a Fund from which all expenses incurred by the Authority for the execution of its functions under this Act shall be paid.
In addition, Section 23 [1] says: There shall be a five per cent of airfare, contract, charter and cargo sales charge payable to the Authority, which charge shall apply on all international and domestic air transportation originating in Nigeria irrespective of place of sale, issuance of air ticket or execution of the contract of carriage.
The distribution formula of the funds accrued to NCAA from these collections is spelt out in Section 23[8] which says: The Funds accruing from the charges referred to under subsection [7] shall be distributed in the following manner:
Nigeria Civil Aviation Authority- 56 per cent;
Nigerian Airspace Management Agency – 22 per cent;
Nigerian Meteorological Agency – nine per cent;
Nigerian College of Aviation Technology – seven per cent; and
Accident Investigation Bureau, now NSIB – six per cent
The entire Funds belong to the Civil Aviation Authority at inception in 1990 in conformity with international standard practices until Aviation Ministers started to encroach on it via a memo. It was these memos that were eventually transmitted into the Act, and it became the Law as it is today. I challenge anyone with a contrary opinion to come up. This writer was a member of the 2001 Civil Aviation Policy review that gave birth to the amendment of the Civil Aviation Act as it is currently.
Further attempts to tamper with the current distribution formula foisted on the Nigeria CAA are an effort meant to weaken the financial base of the Authority, thereby muscling the agency and making it a weakling. The side effect is that the Nigeria CAA will begin to approach government with caps in hand to solicit funds and render its autonomy ineffective. The overall consequence will be catastrophic and an accident waiting to happen, as was the case during the dark era of frequent air mishaps in Nigeria. The proponents of let’s take from NCAA funds are well aware and knowledgeable about this implication.
All the stakeholders are fully aware that agencies in the aviation industry in Nigeria have their respective main sources of Funding. Then why this penchant to want to cripple NCAA?
Sam Adurogboye is a former General Manager, Public Affairs of the Nigeria Civil Aviation Authority
