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Home Sectors Aviation

Aviation workers want halt to 40% contribution of their IGR to federation account

Nigerian aviation unions seek fair treatment, condemn compulsory 40% revenue contribution

Charles Ayodele by Charles Ayodele
June 26, 2023
in Aviation, Business News
NUATE, NLC

Image Credit: Nairametrics File

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  • Nigerian aviation industry unions have condemned the compulsory contribution of agencies’ revenue to the federation accounts.
  • The unions called on President Tinubu to address staff Conditions of Service (CoS) in aviation agencies.
  • The unions’ plea for exemption from deduction to preserve vital safety functions and urge intervention to address CoS issues.

Unions in the Nigerian aviation industry have condemned the continued compulsory contribution of aviation agencies’ 40% revenue generation to the federation account.

The industry unions also called on President Bola Ahmed Tinubu to look into the staff Conditions of Service (CoS) of aviation agencies which they claimed have been operating without valid conditions for many years.

The unions – National Union of Air Transport Employees (NUATE), Air Transport Services Senior Staff Association of Nigeria (ATSSSAN), Association of Nigeria Aviation Professionals (ANAP), National Association of Aircraft Pilot and Engineers (NAAPE) and the Amalgamated Union of Public Corporation Civil Service Technical and Recreational Services Employees (AUPCTRE) – said that the forceful contribution was having a dire strait effect on the performance of the agencies.

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The unions insisted that the Finance Act 2022, which was promulgated by the former administration of President Muhammadu Buhari, contravened the new Acts of several of the aviation agencies, which stipulated that all revenue generated by the parastatals must be ploughed back into the sector for infrastructure and human growth.

These were contained in a letter dated June 19, 2023, addressed to President Tinubu and obtained by the media.

The unions also copied the Secretary to the Government of the Federation; the Head of Service of the Federation; the Ministry of Aviation; the Ministry of Labour and Employment; the Chairman Salaries and Wages Commission and the Director-General Budget Office.

The letter was jointly signed by Principal Deputy General Secretary, ATSSSAN; Comrade Frances Akinjole, General Secretary, NUATE; Comrade Ocheme Aba, General Secretary, ANAP; Comrade Abdul Rasaq Saidu; Deputy General Secretary, NAAPE, Comrade Umoh Ofonime and General Secretary, AUPCTRE, Comrade Sikiru Wahab.

Plea to Preserve Vital Functions 

The unions emphasized that the plea for the reversal of the 40% compulsory contribution of the agencies to the federation account was predicated on the need to avert the imminent danger that may befall the aviation sector if the aviation agencies become incapacitated and unable to render their safety-related functions.

They argued that the full financial accruals of the agencies are grossly inadequate in meeting their financial obligations, stressing that they are usually supplemented by the Federal Government on an annual basis.

The unions added that the aviation agencies are “mere cost recovery organizations” and non-profit, maintaining that deduction of 40% from their financial accruals was akin to the removal of life support from the parastatals. 

  • “Based on the foregoing, we humbly request Your Excellency to exempt aviation agencies from the deduction to preserve the vital safety functions of the same agencies without which the industry will collapse with its catastrophic impact on the national economy,” the unions said.

On the CoS, the unions stated that despite having concluded a management-unions review on the issue many years back, the National Salaries, Incomes & Wages Commission (NSIWC), Office of the Head of Civil Service of the Federation (OHCSF), the Office of the Accountant General of the Federation, and the Budget Office have continued to hold their member’s hostage.

 

 


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Charles Ayodele

Charles Ayodele

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Comments 1

  1. Flying Demystified says:
    June 27, 2023 at 4:49 am

    I support the Nigerian aviation unions’ call for a halt to the compulsory 40% revenue contribution to the federation account. It’s crucial to prioritize the preservation of vital safety functions and address the staff Conditions of Service (CoS) issues. The aviation agencies deserve fair treatment and exemption from this deduction to ensure the industry’s stability and prevent any negative impact on the national economy. I hope President Tinubu takes swift action to address these concerns and support the well-being of aviation workers.

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