ICAO Rep Warns Against Crippling NCAA’s Financial Base
A representative of the International Civil Aviation Organisation (ICAO), the United Nations agency that manages the administration and governance of the Convention on International Civil Aviation to promote safe, secure, and sustainable global air transport, has warned against actions capable of geopardising the financial independence and the exclusive safety oversight roles of the Nigeria Civil Aviation Authority (NCAA).
The ICAO representative also warned that treating the regulator and service providers alike in the proposed funding adjustment is against international best practices and could gravely undermine the independence of the regulator and safety of the Nigerian aviation industry.
Recall that the House of Representatives has proposed a Bill seeking to reduce NCAA’s income from the 5 percent ticket sales charge to about 35 percent and increase NAMA’s income to about 70 percent, even though NAMA has an additional 16 exclusive income sources.
The public hearing by the House of Representatives Committee on Aviation over the proposed review of the allocation of the 5% Ticket Sales Charge and Cargo Sales Charge was held on Thursday in Auja at the National Assembly Complex.
Aviation experts have said that if the proposal becomes law, the NCAA is as good as dead, and the Aviation industry in Nigeria would be without effective regulatory oversight. The NCAA draws over 70 percent of its revenue from the 5 percent TSC.
The NCAA currently over-sights the entire aviation industry – from service providers like FAAN, NAMA, and NiMet to airline operators. But with a weakened financial position, even the airlines would compromise standards, as the NCAA would be ineffective in its core mandate.
Nigeria’s Permanent Representative to ICAO, Engr. Mahmud Ben-Tukur, speaking at the public hearing, emphasized that, while every aviation agency has a distinct statutory responsibility, the mandate for the safety oversight of Nigeria’s civil aviation industry rests solely with the NCAA.
He expressed deep concern that lumping the regulator and service providers together in the proposed funding arrangement could undermine the independence of the regulator, impact its funding position, and compromise its regulatory functions.
The former Nigerian representative on the ICAO Council, and immediate past Director-General, NCAA Capt. Musa Nuhu stressed that an effective aviation industry depends on a strong, adequately funded, and independent safety oversight capability of the Authority.
Also speaking virtually, the former Nigeria’s permanent representative to ICAO and former President, ICAO Assembly, Dr. Bernard Aliu, and former Director-General of Civil Aviation, Dr. Harold Demuren, underscored the need to preserve the financial independence of the NCAA, noting that a strong, adequately funded and independent regulator is critical to sustaining Nigeria’s aviation safety oversight system and maintaining the country’s compliance with international aviation standards.
