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Airfares may rise as NAMA set to raise levy by 800%

Published

4 months ago

July 27, 2024

Admin

Amid complaints by the Airline Operators of Nigeria over multiple taxation, the Federal Government has expressed its intention to further raise its charges.

The Managing Director of the Nigerian Airspace Management Agency, Umar Farouk, announced this on Friday at the League of Airports and Aviation Correspondents seminar themed “Aviation Survivability amidst a Challenging Macro-Economic Environment,” held in Ikeja, Lagos.

He stated that the agency would raise its en-route navigational charges from N2,000 and N6,000 to N18,000 and N54,000 per flight. Similarly, the airspace agency increased the extension of service hours to airlines from N50,000 to N450,000, representing an 800 per cent increase per extension to enable the agency to recover the cost of diesel and other logistics during the extension period.

This means that airfares might also skyrocket by 800 per cent.

In January, NAMA and the Nigerian Civil Aviation Authority held a strategic meeting with some airline operators to review what has been described as the outdated N16,000 terminal en-route navigational charges.

He said, “The Nigerian Airspace Management Agency relies on statutory fees for the management of the airspace (remember that aviation takes place only in the air). These funds are generated from services we provide to the flying community.

Without these funds, NAMA can’t discharge its responsibility of ensuring the safety of our airspace effectively. We mainly generate these funds through the airline companies.”

Farouk also noted that in 2023, NAMA had an expenditure of about N21 billion in personnel costs alone, over N12 billion in capital costs, and over N10 billion in overhead costs, adding that all these were to be funded without the Federal Government budgetary allocation.

He said NAMA had been charging as low as N11,000 per flight when a one-way domestic ticket cost only N16,000.

He mentioned that while ticket prices today have gone up astronomically to as high as between N150,000 to N200,000 for a one-way economy ticket owing to the prevailing economic circumstances, NAMA navigational charges had remained the same since June 2008.

“Currently, our unit rate for international flights charged for service provision is about $70, and domestic flights are charged N6,000. While NAMA recognises the difficult economic environment in which aviation operates in Nigeria, it is equally a part of the ecosystem.

“It goes to the same market to procure equipment and other services like training. If NAMA is to survive and continue to guarantee safety and efficiency in the airspace, it must breathe.

“Even though most costs in the economy have increased by more than 1,000 percent, NAMA has proposed to increase its fees by 800%. The new rates for en-route and terminal navigation charges are to be reviewed from N2,000 and N6,000 to N18,000 and N54,000 per flight.

“Also, the extension of service hours is to be reviewed from N50,000 to N450,000 per extension to enable the agency to recover the cost of diesel and other logistics during the period of extension”.

“The largest percentage of NAMA’s revenue comes from en-route navigation charges (domestic and international flights) and terminal navigation charges (domestic and international flights). While international flights pay in US dollars, domestic flights pay in the Nigerian currency.”

News

Reps Quiz Federal Polytechnics Damaturu, Mubi, Monguno Over Infractions

Published

3 hours ago

November 24, 2024

Gloria Ikibah

By Gloria Ikibah

The House of Representatives has queried the Federal Polytechnic Mubi, Adamawa State, Federal Polytechnic Monguno, Borno State and Federal Polytechnic Damaturu, Yobe State over series of administrative and financial infractions.

This was as Rectors and some management staff of the three institutions appeared before the house Committee on Polytechnics and other Higher Technical Education, as part of oversight function to render accounts of their budget performances.

But the Committee found various infractions in the documents presented by the three institutions which ranged from abuse of Federal Character in employment, Extra-Budgetary spendings and recurring abandoned, uncompleted projects in one of the institutions.

During presentation by the Rector of Federal Polytechnic Mubi, Dr. Abdulrahman Ishaku, the Committee discovered that projects that were to be completed in two to three years were not finished despite adequate release of funds in budget.

Specifically, the Committee was provoked by the non-completion of a staff quarters and an administrative block project by the institution for years.

Speaking, Rep. Emil Inyang who stood in for the Committee Chairman, Rep. Fuad Kayode Laguda at the meeting on Thursday, lamented that, the projects have not been completed and have been recurring in the budgets.

He said, “Physical Planning, can you show me where you rolled over the project to 2023? It’s not here. Is it in 2024? Why do you come here to lie? Where is it? That admin block, is it in use? Has it been completed? So, you have abandoned it.

“Gentlemen, I don’t know what to say to these kinds of people. Construction of staff quarters, Item number Nine under 2022 capital projects. Have you seen it Rector? What is the state of that building? Is it completed? It is completed, that’s what is shown here, and you are saying it is still remaining fittings. Is fittings not part of completion?

“You people are just disgracing yourselves. We are just killing this country from various directions. From our various positions we are just killing this country. Let me ask a question on this staff quarters. In 2022, the amount appropriated was N57.9 million, N28.9 was utilized was released, so remaining N28.9 that’s half.

“But, by 2023, appropriation was 88 and the entire amount has been released. So, is it the same project?If it is the same project, when this appropriation was done, does it mean that, the other 28 that was not done, not utilised that time, is it kept somewhere?”

The Rector however informed the Committee that, the fund was later mopped up.

In his ruling after the submission, the Chairman stated, “What I will tell you now is that, instead of going through this your document that does not satisfy anything, please, you will.list all the abandoned, all the structures you have not completed. When it started, How much was appropriated, How much you have put in till date, the state of those projects one after the other in the entire school.

“Not just in. your regime. From inception till date.So that, we will include them in your 2025 budget. You will not do any new thing as capital. You must complete these abandoned. You have turned some of these projects to conduits of putting money into them and not completing them. Even the ones you have written as completed here. You used your own mouth to tell us here that, you have not installed fittings. That is what you said.

“So, this is why it is necessary for us to go there and see things for ourselves.Because what you are doing here, you are just wasting governments’ resources. These abandoned projects or the state of the jobs especially constructions, let’s have it in one week time. How much you have put in there, at what stage are they, how much you will need to complete”.

Similarly, the Committee criticized the Federal Polytechnic Damaturu over using Insecurity as an excuse for financial malfeasance and other infractions as well the abuse of Federal Character in employment.

Chairman of the Committee noted that, the institution has carelessly spent its Internally Generated Revenue (IGR) according to the records presented to the Committee.

In his presentation, the Acting Rector, Dr Ibrahim Babale Gashua said, the institution is faced with the challenge of low IGR as a result of the insecurity being faced in the state, which according to him, has reduced students intake and other activities.

He said, “We that are residing in Damaturu, the capital of Yobe State, we have three different high institutions. We have to lower our tuition fee because not everybody will come from outside the state. Even those in the state, it is only the course that is not available in their places that they come for in Damaturu because of the insurgency”.

The Committee however discovered that, despite the insurgency claim that reduced the institutions IGR, there was no commensurate reduction in its spending which the Committee said cannot be justified.

Another member of the Committee while commenting on the matter said, “Everybody comes to claim insurgency. Students don’t want to come to the schools. But it doesn’t stop them from spending the whole money.IGR, you blow it, Overhead, and yet, there is insurgency. So, it’s funny. You see, if I have a house and I am supposed to have 10 people occupying it. If 10 people are not occupying it, it means that my NEPA.payment, my PHCN money will reduce, because consumption of power supply will reduce. My water consumption will reduce. My number of cleaners will reduce because I don’t have full occupation. You understand what I am saying? My security personnel will reduce in terms of numbers.

“So, these are the issues.Most of the Polytechnics in the North come here brandishing this insecurity issue as the major reason for non performance. You are not performing on students admission, but you are performing on your expenditure profile”.

Speaking, Chairman of the Committee said, “Ok, this insurgency is a big excuse. Once you mention it, you will all close our mouths.Look at your Nominal Role, a federal Institution. Open to page 47 and 48, you will see how you have obeyed the law of the land, the Federal Character. Have you seen it Acting Rector? That’s the best you can do? You think from all those Zero-Zero states, if you offer them employment they wouldn’t come?”.

The Rector however reacted saying, “Some of them don’t come. Even those that we have left. I am telling you Sir”.

But a member of the Committee, Rep. Adebayo Adepoju faulted the Rector’s claim and said, it was not justifiable.

He said, “You cannot defend it, because if you are trying to defend it, saying that you’ve done everything in your powers and Nigerians have refused to come to your school, at that point, you say you have done the most you can do.

“But, when you did not even given Nigerians the opportunity to apply. We know what goes on in Federal Character. We know. I am telling you, if you go there and you want to apply, everybody has an interest, they give you. And before you know, they give you Certificate of Compliance.

“That Certificate of Compliance, we have shredded it so many times. Give yourself the opportunity to be fair to Nigerians.People want jobs in this country. We have so many jobless people and you will agree with me, there are many that will say, I won’t mind to go to Borno to teach.Please let’s give them an opportunity”.

The Rector and Management of the Polytechnic were directed to remedy the anomalies in their employment and henceforth advertise all vacancies in national dailies in order to give all Nigerians equal opportunity.

Similarly, after a presentation by the Rector, Federal Polytechnic Monguno, Prof. Garba Mohd, the Committee directed the institution to also be diligent in its observance of Federal Character and other issues as the Committee discovered a skewed empolyment in the institution in favour of a particular section of the country.

It reminded the Rector and members of his management that, as a federal institution, it is required by law to treat all parts of the country in terms of employment and other considerations.

News

Obasanjo narrates how he escaped becoming drug addict

Published

6 hours ago

November 24, 2024

Naijablitznews

Former President Olusegun Obasanjo has revealed how he almost became a drug addict.

He spoke in Abeokuta over the weekend at the second edition of ‘Fly Above The High’ anti-drug campaign conference organised by the Recovery Advocacy Network.

Obasanjo stated that smoking during his youthful age led to chronic coughing and almost became an addiction.

The former President, while lamenting the increase in drug abuse among Nigerians and other West Africans, urged Nigerian students and young people to refrain from abusing psychoactive drugs, saying that they ruin life rather than enhance it.

“If I had persisted, I could have become addicted. Once you get involved, it is difficult to get out.

“There’s nothing drug can do for you except destruction.

“We found out that West Africa has equally been a centre for drug consumption in a very bad way. That was more than 10 years ago, so the situation has since gone worse. And whatever applies to West Africa applies to all other parts of Africa,” Obasanjo said.

He cautioned against stigmatization and urged individuals who are already addicted to psychoactive drugs to get help.

News

We saved $20bn after Petrol Subsidy Removal and FX Rate Reforms, Says Finance Minister

Published

6 hours ago

November 24, 2024

Naijablitznews

Wale Edun, minister of finance and coordinating minister of the economy, says Nigeria has saved $20 billion from petrol subsidy removal and market-based pricing of the foreign exchange rate.

Edun spoke at a ceremony recently held to mark the first 100 days in office of Esther Walso-Jack, head of civil service of the federation, in Abuja.

“An amount of five per cent of GDP is what those two subsidies were costing when there was a subsidy on PMS; when there was petroleum product generally for a long time and when there was a subsidy of foreign exchange. Between them, they were costing five percent of GDP,” he said.

“If you say GDP was on average, let’s say $400 billion. We all know what five percent of that is – $20 billion of funds that could be going into infrastructure, health, social services, education.”