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Aviation Agencies, Airlines Clash Over 5% Levy as Minister Misses Reps Hearing
By Gloria Ikibah
Sharp divisions emerged within Nigeria’s aviation industry on Thursday as regulators, service providers, airline operators and aviation training8 institutions advanced conflicting proposals on how the statutory five per cent Ticket Sales Charge (TSC) should be shared during a public hearing organised by the House of Representatives Committee on Aviation.
The hearing, which focused on proposed amendments to the Civil Aviation Act, 2022 and the Nigerian Airspace Management Agency (NAMA) Act, brought together major stakeholders seeking changes to the current revenue allocation formula.
Noticeably absent was the Minister of Aviation and Aerospace Development, Festus Keyamo, despite the significance of the proposed amendments to agencies under his supervision.
Although stakeholders agreed that the aviation sector requires stronger and more sustainable funding, there was little consensus on how the existing revenue should be distributed.
However, the Nigerian Civil Aviation Authority (NCAA) opposed any reduction in its allocation, insisting that the regulator depends heavily on the Ticket Sales Charge to discharge its statutory oversight responsibilities.
Director-General of Civil Aviation, Capt. Chris Najomo, argued that while the NCAA supports improved funding for all aviation agencies, any review of the revenue-sharing formula must comply with International Civil Aviation Organisation (ICAO) standards.
According to him, unlike NAMA, which generates significant income from commercial air navigation services, the NCAA relies substantially on the statutory levy to perform its regulatory functions.
“We submit that NCAA’s allocation of the five per cent Ticket Sales Charge be restored to 65 per cent to overcome the deficiencies identified by ICAO at its last audit and bring Nigeria in line with global best funding practices,” Najomo said.
He stressed that aviation safety depends on more than legislation.
“Aviation safety is not sustained by legislation alone. It depends upon competent inspectors, effective surveillance, continuous certification, recurrent technical training, international cooperation and an independent regulator possessing the financial capacity to discharge its statutory mandate,” he added.
Domestic airline operators, however, maintained that the issue goes beyond simply redistributing the existing revenue.
Speaking on behalf of the Airline Operators of Nigeria (AON), former NAMA Managing Director and aviation expert, Capt. Roland Iyayi, described the current funding structure as outdated and burdensome to operators.
“The five per cent service charge has outlived its usefulness. It has created a burden on domestic airlines,” Iyayi said.
He disclosed that the association had already submitted a comprehensive proposal advocating broader institutional reforms across the aviation sector rather than merely adjusting the current sharing formula.
According to him, airlines are struggling with escalating operational costs, particularly aviation fuel, which now accounts for nearly 40 per cent of operating expenses.
He explained that many operators now find it increasingly difficult to remit the statutory levy because much of their ticket revenue is consumed by fuel costs.
While backing NAMA’s request for a larger share of the existing pool, the airline operators proposed replacing the percentage-based levy with a unit charge system similar to the Passenger Service Charge collected by the Federal Airports Authority of Nigeria (FAAN).
Iyayi also proposed the establishment of an Aviation Development Fund into which all industry revenues would be paid before being transparently distributed among aviation agencies.
He further urged lawmakers to exempt aviation agencies from the Fiscal Responsibility Commission’s remittance requirements, arguing that surplus revenues should remain within the aviation sector for infrastructure development instead of being transferred to the Consolidated Revenue Fund.
The airline operators also recommended that revenues from obstacle clearance fees currently collected by the NCAA should be transferred to NAMA, which they said performs the technical assessments required for such approvals.
Declaring the hearing open on behalf of the Speaker of the House of Representatives, Rt. Hon. Abbas Tajudeen, Chairman of the House Committee on Aviation, Rep. Abdullahi Idris Garba, said the proposed amendments were intended to strengthen transparency, improve institutional funding and enhance safety across Nigeria’s aviation sector.
He assured stakeholders that every memorandum submitted during the hearing would receive fair and objective consideration before the committee presents its recommendations to the House of Representatives.
The committee is expected to review all submissions before deciding whether to amend the contentious revenue-sharing formula governing the aviation industry’s five per cent Ticket Sales Charge.
Anambra State Government has acknowledged that former Governor Peter Obi performed well during his tenure, while clarifying that its ongoing scrutiny of his administration’s financial records is not intended to discredit his achievements or political ambitions.
The state Commissioner for Information and Value Reorientation, Law Mefor, made the clarification while addressing the controversy surrounding Obi’s claim that he left no financial liabilities for subsequent administrations.
Mefor said the government’s position was focused on establishing the accuracy of the state’s financial records, particularly claims relating to funds allegedly left behind by the former governor.
He specifically questioned Obi’s assertion that his administration left N12.13 billion in an ecological fund account domiciled with First Bank at the Nnamdi Azikiwe University (UNIZIK), Awka branch.
According to the commissioner, the state government requested the relevant account statement from the bank but found no evidence supporting the claimed balance.
Mefor, however, stressed that the financial inquiry should not be interpreted as an attempt to diminish Obi’s record in office.
“The intention of the Anambra State government is not to indict Peter Obi. Peter Obi did well as governor.
“There is no rift between Governor Soludo and Peter Obi. They are both in politics, and they have their interests to defend,” he said.
The comments come amid renewed political exchanges between supporters of Obi, the former Anambra governor and Labour Party presidential candidate, and the administration of Governor Chukwuma Soludo.
While the two politicians have publicly differed over aspects of Anambra’s financial and developmental record, Mefor said the state government’s position was primarily aimed at clarifying the records rather than attacking Obi personally.
Abia State Governor Alex Otti has said he will support President Bola Ahmed Tinubu’s bid for re-election in 2027, despite remaining a member of the opposition Labour Party (LP).
Otti made the clarification during an interview with Arise Television on Friday, where he addressed questions about his relationship with the ruling All Progressives Congress (APC) and his position on Tinubu’s 2027 ambition.
The governor was asked whether his support for Tinubu amounted to a “comfortable arrangement” between him and the ruling party.
Otti agreed with the description, saying his position as a governor and member of the National Economic Council made it difficult for him to openly oppose the President’s re-election bid.
“It works the way you have said. It’s a statement of fact. I am not in a position to oppose his candidacy,” he said.
Otti explained that although he could disagree with some government policies, his membership of the National Economic Council meant he was also part of the broader governance structure through which federal policies and decisions were discussed.
He said openly opposing the President could create unnecessary tension within the system, adding that he preferred to raise disagreements during government meetings.
“And sometimes people don’t understand the opposition. When you say opposition, and you are part of a government, then what you are driving towards is implosion.
“So if I do have a problem with anything, I’ll sit down in one of our meetings and I’ll make my point. So I’m not going to oppose his candidacy,” Otti said.
The Abia governor further stressed that his role in the National Economic Council had placed him directly within the process of implementing and discussing policies of the Federal Government.
“I had also said that as a governor in this republic, that a lot of the things that are being, in fact, I’m part of all the things that have been done as a member of National Economic Council. So, we should distinguish that.
“When somebody now says, ‘Oh, you are supporting or you’re not,’ I have to support him,” he said.
However, Otti appeared to draw a distinction between supporting Tinubu’s re-election and abandoning the Labour Party.
When reminded of his earlier statement that he still had a presidential candidate in the Labour Party, the governor rejected the suggestion that he was referring to Tinubu.
“No, that’s not what I said,” he said.
Asked whether he was referring specifically to a Labour Party presidential candidate, Otti replied, “Yes.”
But when pressed again on whether he supported Tinubu’s 2027 bid, he responded: “What do you expect me to say? To say I’m not supporting him?”
Otti also said Tinubu had the constitutional right to seek another term in office, while noting that some of the President’s policies were consistent with positions he had previously held.
He specifically cited the removal of the petrol subsidy, which he described as unsustainable.
“Quite frankly, there are a lot of things that we have talked about now, that he has implemented, that resonate with me and my thinking.
“People don’t have to agree with me, but from where I sit, I know that for instance, the fuel subsidy was even unsustainable,” Otti said.
Former Osun governor’s absence raises questions as Atiku unveils campaign structure dominated by top political figures
Former Osun State Governor and National Secretary of the African Democratic Congress (ADC), Rauf Aregbesola, has been left out of the presidential campaign council unveiled by the party’s candidate, Atiku Abubakar, ahead of the 2027 general elections.
Also absent from the campaign structure is the party’s National Publicity Secretary, Bolaji Abdullahi.
The omissions have attracted attention because both officials occupy key positions in the ADC’s national leadership. The party’s official website currently lists Aregbesola as National Secretary and Abdullahi as National Publicity Secretary.
Atiku approved the composition of the campaign council on Thursday, with Kashim Ibrahim-Imam appointed chairman and former Kaduna State Governor Nasir el-Rufai named deputy chairman.
Senator Austin Akobundu was appointed Director-General and Campaign Manager, while veteran journalist and publisher Dele Momodu will oversee the Media and Communications Directorate. Former Kogi West Senator Dino Melaye was named Deputy Director-General of the Contact and Mobilisation Directorate.
Former Edo State Governor and ex-national chairman of the All Progressives Congress (APC), John Oyegun, will chair the Campaign Advisory Board.
The policy team will be headed by Mohammed Hayatu-Deen, who contested the ADC presidential primary alongside Atiku, while former Deputy Governor of the Central Bank of Nigeria, Kingsley Moghalu, is also listed as a member.
According to Phrank Shaibu, Atiku’s Director of Strategic Communications, the campaign structure was designed around specific responsibilities, with six operational directorates and 30 directors assigned to defined roles.
“This is a structure built for work. Every directorate has a duty. Every director has an assignment. Every appointee must account for results,” Shaibu said.
Why Aregbesola’s absence is attracting attention
Aregbesola’s omission is particularly notable because of his position as one of the senior officers of the opposition party and his involvement in its political activities.
On the same day the campaign council was announced, Aregbesola appeared alongside Atiku and other ADC leaders in Akure, Ondo State, at the reception organised for Eyitayo Jegede, the former governorship candidate who joined the ADC.
However, Abdullahi has played down the significance of the omission.
Speaking to TheCable on Friday, he said the absence of some party leaders from the campaign structure should not be interpreted as evidence of disagreement within the party.
“There are so many party leaders whose names are not there. We play an important role in the party. So, it is not anything,” Abdullahi said.
He argued that the ADC’s national leadership still had to perform its statutory party functions and that removing key national officers from the party structure simply because of the campaign would be counterproductive.
Reported disagreement over campaign structure
Despite that explanation, reports indicate that the composition and structure of the campaign council had generated disagreement within the party.
According to reports, Kashim Ibrahim-Imam, who was appointed chairman of the campaign council, and Dino Melaye were involved in compiling the campaign structure before it was submitted to the ADC leadership for consideration.
Aregbesola was reportedly unhappy with aspects of the proposed organogram, particularly the arrangement under which some party executives would be required to report to individuals serving in the campaign structure who are not members of the party’s formal leadership.
He was also reportedly said to have questioned aspects of the composition of the council.
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