The National Union of Air Transport Employees (NUATE) has urged the Federal Government to review the policy requiring aviation agencies to remit 50 per cent of their internally generated revenue (IGR) to the Treasury Single Account (TSA), warning that it is limiting funding for airport development.
NUATE National President Ben Nnabue made the call in an interview with the News Agency of Nigeria (NAN) in Lagos, stating that the policy is constraining aviation agencies’ ability to maintain infrastructure and improve operations.
According to Nnabue, the deduction affects four key aviation bodies, the Federal Airports Authority of Nigeria (FAAN), Nigeria Civil Aviation Authority (NCAA), Nigerian Airspace Management Agency (NAMA), and the Nigerian College of Aviation Technology (NCAT).
He said allowing these agencies to retain more of their revenue would accelerate airport modernisation and strengthen Nigeria’s competitiveness in the global aviation sector.
“Recent progress in the aviation industry could be greater if agencies had more funds to run airport operations and position Nigeria’s aviation industry globally,” he said.
Nnabue noted that major airports around the world receive significant government funding and suggested Nigeria should adopt a similar approach to strengthen its aviation infrastructure.
Beyond funding concerns, the union leader highlighted improvements in workers’ welfare, noting that agreements had been reached with airlines including Emirates, Ethiopian Airlines, and local operators such as SACHO and NAHCO.
He also called on airlines that restrict workers’ freedom of association to allow union participation, warning that limiting workers’ voices could affect airport safety and security.
The Federal Ministry of Finance in December 2023 directed federal agencies to comply strictly with the Treasury Single Account policy under the Fiscal Responsibility Act, 2007.
Under the directive, fully funded government agencies must remit 100 per cent of their IGR, while partially funded agencies, including aviation bodies, remit 50 per cent to the TSA.
The policy aims to strengthen government revenue, improve transparency, and enforce fiscal discipline.
However, industry stakeholders argue that the deduction reduces the ability of agencies to invest in infrastructure, training, and operational upgrades.
Similar concerns have previously been raised by the Nigerian Airspace Management Agency, while maritime unions also threatened strike action in 2024 over the same policy affecting the Nigerian Ports Authority.
