Nigeria’s Airspace Faces Modernisation Hurdles as Revenue Deduction Threatens Safety and Growth

The opening of the House Committee on Aviation’s four-day retreat in Nigeria was marked by a decisive appeal from the Managing Director of the Nigerian Airspace Management Agency (NAMA), Engr. Farouk Umar. Addressing lawmakers, aviation authorities, and industry experts, Umar called on the National Assembly to urgently abolish the current 50 percent revenue deduction imposed on the agency’s earnings—a policy he says is undermining the country’s aviation ambitions.

Umar’s message resonated against the backdrop of Nigeria’s efforts to reposition itself as a leader in sub-Saharan Africa’s aviation landscape. He referenced Section 9(2) of the NAMA Act 2022, which stipulates that all fees and charges collected by the agency are exempt from external deductions. “The law is clear,” he emphasised, highlighting the contradiction between the statutory guidelines and the ongoing financial constraints. The Managing Director warned that the continued enforcement of the 50 percent levy at the point of revenue collection is eroding NAMA’s capacity to maintain essential air traffic control towers, radar systems, and communications networks. These assets are fundamental for safe and efficient airspace management, not only for Nigeria but for the entire region that relies on Nigerian airspace as a key corridor.

The impact of this deduction, Umar argued, is far-reaching. It limits the agency’s ability to invest in next-generation technology, including performance-based navigation and satellite-based augmentation systems as recommended by the International Civil Aviation Organization (ICAO). These technologies are crucial for modernising airspace, ensuring safety, and keeping pace with global standards—factors that directly affect the confidence of international carriers and partners considering routes to and through Africa.

Umar stressed that the revenue deduction directly violates NAMA’s statutory mandate by restricting the funds needed for critical infrastructure, ongoing maintenance, and staff development. He painted a picture of an agency caught “between statutory mandate and fiscal constraint,” unable to fulfil its obligations to expand capacity and maintain Nigeria’s competitive edge. This challenge is particularly pertinent for the sub-Saharan aviation sector, which seeks to attract investment, enhance connectivity, and support the region’s broader economic goals.

Beyond the pressing issue of revenue deductions, Umar called attention to another overlooked financial opportunity: the Obstruction Evaluation Fees as stipulated in Section 18(1) of the NAMA Act. These fees, designed to fund safety oversight and hazard evaluation, remain uncollected due to overlapping responsibilities with another aviation entity. According to Umar, this not only deprives NAMA of a legitimate revenue stream but also potentially compromises Nigeria’s airspace safety oversight. The lack of clarity and enforcement in this area is a missed opportunity for both safety and financial sustainability, and a lesson for other African countries confronting similar regulatory overlaps.

Umar’s address concluded with a call for the urgent review of air-navigation charges, which have been static since 2008. In an era of rising operational costs, inflation, and evolving technological needs, he argued that maintaining charges at outdated levels undermines the agency’s ability to recover costs and invest in the future. With aviation being a capital-intensive sector, especially in Africa, regular review of charges is necessary to ensure sustainable growth, improved safety, and enhanced competitiveness for the region’s airlines and airports.

The retreat, themed “Emerging Trends in Global Aviation: Sustainability, Technology, and Digital Transformation,” underscored the urgent need for agencies like NAMA to gain financial autonomy. Abdullahi Idris Garba, Chairman of the Committee, reiterated the legislative commitment to supporting actionable plans that will strengthen safety, infrastructure, and compliance with international regulations. The interactive sessions that followed reflected a broad consensus among stakeholders: without fiscal independence, Nigeria’s—and by extension, sub-Saharan Africa’s—aspirations for a modern, safe, and globally integrated aviation sector will remain elusive.

For Africa’s aviation stakeholders, the situation in Nigeria serves as a critical case study. As the continent seeks to modernise its skies, adopt new technologies, and ensure world-class safety standards, the question of financial autonomy for aviation agencies will be central. The ability to channel revenue directly into operational improvements, infrastructure upgrades, and workforce training could determine which countries emerge as regional hubs and which risk being left behind. In this context, the ongoing debate over NAMA’s funding is not just a local issue—it is a signal to the entire African aviation ecosystem about the importance of regulatory clarity, legislative support, and sustainable financing models.

With the retreat setting the stage for deeper dialogue, the coming months will likely see renewed advocacy for policy reforms that prioritise the growth and safety of Nigeria’s airspace. As the region’s aviation sector eyes the future, the successful resolution of these challenges could unlock new opportunities for connectivity, trade, and tourism across Africa.