Air transport workers under the National Union of Air Transport Employees (NUATE) have called on the Federal Government to review the policy requiring aviation agencies to remit 50% of their internally generated revenue (IGR) to the Treasury Single Account (TSA).
The disclosure was made by NUATE National President, Comrade Ben Nnabue, in an interview with the News Agency of Nigeria (NAN) on Saturday in Lagos.
He explained that the policy limits funding for airport development and operations, making it difficult to maintain infrastructure and compete internationally.
According to Nnabue, the TSA policy affects key aviation agencies and reduces their capacity to reinvest in infrastructure and workforce development. The union argues that retaining more revenue could accelerate the growth and modernization of Nigeria’s airports.
What they are saying
Nnabue highlighted that four major aviation agencies—Federal Airports Authority of Nigeria (FAAN), Nigeria Civil Aviation Authority (NCAA), Nigerian Airspace Management Agency (NAMA), and Nigerian College of Aviation Technology (NCAT)—are affected by the TSA policy. The union stressed that the funds retained are essential for infrastructure development, facility upgrades, and compliance with international standards.
- “The National Union of Air Transport Employees (NUATE) have called for a review of the 50% Internally Generated Revenue (IGR) of aviation agencies, to the contributory Treasury Single Account (TSA).”
- “National President of NUATE, Comrade Ben Nnabue, made the appeal in an interview with the News Agency of Nigeria (NAN) on Saturday in Lagos,” the NAN report read in part.
- It added, “Recent developments achieved in the aviation industry could be more if agencies had more funds to run airport affairs while positioning Nigeria’s aviation in the global ecosystem.”
Nnabue said that many leading airports globally are government-funded and that Nigeria should adopt a similar approach to strengthen its airport system.
More insights
The union president also discussed improvements in workers’ welfare, citing agreements with airlines like Emirates and Ethiopian Airlines, as well as local operators such as SACHO and NAHCO. He noted that most agencies’ conditions of service have been finalized, with only a few outstanding issues awaiting resolution.
- Nnabue urged airlines restricting employees’ freedom of association to allow union participation, warning that silencing workers could compromise airport safety and security.
- He called for navigation charges to be reviewed every four years by NAMA, suggesting that revenue systems could mirror annual salary adjustments to ensure sustainability.
- Emphasis was placed on training airport personnel to improve service delivery and operational efficiency.
He commended Minister of Aviation and Aerospace Development, Festus Keyamo, and FAAN Managing Director, Olubunmi Kuku, for the rebranding of Murtala Muhammed International Airport (MMIA), while assuring that workers at the Enugu Airport concession remain on FAAN’s payroll with full benefits.
Backstory
The Federal Ministry of Finance, in a circular dated December 28, 2023, signed by Minister Wale Edun, directed the creation of new Treasury Single Account (TSA) sub-accounts for federal agencies and parastatals to ensure compliance with the Fiscal Responsibility Act, 2007.
- Fully funded Ministries, Departments, and Agencies (MDAs) are required to remit 100% of their internally generated revenue (IGR) to the new Sub-Recurrent Account, while partially funded agencies must remit 50%.
- Partially funded agencies include the Nigerian Port Authority (NPA), Federal Inland Revenue Service (FIRS), Nigerian Communications Commission (NCC), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigerian Customs Service (NCS), and Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
All statutory revenues, such as tender fees and proceeds from asset sales, must be fully remitted to the Sub-Recurrent Account.
The policy is intended to boost revenue, enforce fiscal discipline, and improve transparency in government financial management.
What you should know
This is not the first time workers have objected to the 50% IGR deduction.
- In January 2024, NAMA Director General, Farouk Umar, urged the Federal Government to reconsider, citing substantial capital investment needs.
- In February 2024, maritime workers threatened a nationwide strike over the 50% deduction for the Nigerian Ports Authority, advocating for a 30% remittance instead.
The unions argue that the deduction hampers operational efficiency and the ability of agencies to meet national and international obligations, making a review essential for sustainable growth.
