Airspace management agency anticipates reversal of 50% revenue deduction

NAMA

The Nigerian Airspace Management Agency (NAMA) says it is currently experiencing serious financial challenges as a result of a 50% revenue cut.

Because the deduction has drastically reduced its revenue – by more than half -at a time when infrastructure and staff development are becoming more and more necessary, NAMA claims that it is harmful to airspace safety.

“Our airspace must remain safe at all times, and the existing financial model cannot continue. Our capacity to repair and maintain vital infrastructure, like our antiquated surveillance systems that are over ten years old and in desperate need of replacement, is hampered by the 50% revenue deduction.”

Farouk Ahmed Umar, managing director and chief executive of NAMA, stated in a statement that the organization “cannot meet the high costs of procuring and maintaining essential equipment or ensuring the continuous training of our technical staff, which is vital for maintaining safety standards, without adequate funding.”

According to Umar, it’s critical to comprehend that NAMA follows the International Civil Aviation Organization’s (ICAO) recommendation and operates on the cost recovery principle.

He explained that all charges are intended exclusively to recoup equipment and other costs incurred during service providing.

“Despite our enormous capital investment needs, NAMA only receives 22 percent of the five percent airfare, contract, charter, and cargo sales charges under the present revenue-sharing model. The Nigerian Airspace Management Agency receives 22% of the total, while the Nigeria Civil Aviation Authority, which now has fewer responsibilities, is given 56%.”

The MD of NAMA stated, “This formula is skewed against NAMA despite the enormous capital requirement of its investment, endangering our ability to meet both national and international obligations.”

Restoring NAMA’s whole revenue allocation, he said, is very important because it will allow NAMA to meet its infrastructure’s urgent needs, improve operational effectiveness, and guarantee that its safety-critical staff members receive ongoing training.

“We can fulfill our mandate to provide safe and dependable air navigation services throughout Nigeria’s airspace with adequate funding.”

“We can greatly improve air safety by reversing the 50% revenue deduction, ensuring that Nigeria’s skies remain safe and maintain high safety standards,” Umar stated.

He called on all interested parties to back this crucial reform for the aviation industry’s future and the public’s safety when flying.

“At this point, I believe it is necessary to remind our political leaders that the entire aviation system is about safety, which remains sacred due to the fact that there is no parking space in the sky. Safety procedures and protocols must be developed and strictly followed while on the ground,” he stressed.

 

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