Stakeholders Push for NAMA’s Navigational Charges Review
The Nigerian Airspace Management Agency (NAMA) is sounding the alarm about the need for increased funding to maintain and upgrade its navigational aids, which are crucial to ensuring safe air travel. With equipment replacement overdue and revenue deductions impacting operations, stakeholders urge the government to reconsider the 50 per cent revenue deduction and review navigational charges, last updated 18 years ago.
NAMA holds the ace in Navigational aids, ensuring aircraft safety from takeoff to landing, relying on facilities operated by unsung heroes. The agency has continued to ensure the provision of seamless navigation of aircraft in its airspace, both for foreign and domestic airlines, not only because of the reliability of its equipment but also as a result of the ingenuity of professionals in the system. Most of these navigational aids are yearning for replacement. Over the years, different managements have tried to sustain the day-to-day running of the agency with limited resources generated by the agency.
A reliable navigation aid is the backbone of safe and secure airspace, but the present management has been grappling with the challenges of funding, as it concerns the replacement of navaids and other backups. In the midst of this shortage of funds, the Federal government has continued to deduct from the source 50 per cent of the revenue generated by agencies in the aviation sector. This is seen by stakeholders as retrogressive and capable of destabilising the whole organisational system.
Stakeholders in the sector have been calling for upward review of navigational charges by the Nigerian Airspace Management Agency to enable the agency meet its operational challenges. The last navigational charges was dwere over 18 years ago, and the next increment on charges would have taken effect from September 1, 2024.
It is glaring that the tariffs of 18 years ago are not applicable in today’s economy; this is all the more reason for the upward review being clamoured by stakeholders. Some stakeholders have argued that airline operators can not shy away from the fact that it is long overdue for the review of navigational charges.
Engr Selzing Miri, President of the National Association of Air Traffic Engineers e, expressed worry about what NAMA is passing through in terms of finance. To Miri, the navigational charges are long overdue for review, adding that the 50 per cent revenue deduction from the agency has remained a thereatest challenge.
“We have made it clear that without enough funding, NAMA will not be able to sustain the level of safety being enjoyed in the aviation industry. Most of these facilities are critical to ensuring the safety of flight movements” He added that the Agency needs to purchase, upgrade and maintain these facilities to achieve its goal, saying that it remained very critical to look into the funding of NAMA to provide critical infrastructure.
It will not be out of place for NAMA to tinker with En-route Navigational Charges (ENC) and Terminal Navigational Charges (TNC), two channels that the agency make makeslargest percentage of their revenue. Both charges had remained static since 2008, giving the airlines latitude to go about their operations throughout the years.
Available statistic shows the unit rate/minimum charge for en-route is N18,000 from N2,000 per flight, while the new unit rate/minimum charge for terminal navigation charge (TCN domestic) is N54,000 from N6,000 per flight. In addition, the extension of hours of service is also to be reviewed from N50,000 to N450,000 per extension to enable the Agency recover the cost of diesel and other logistics during the period of extension.
It is therefore baseless to condemn the introduction of new charges should the agency deploy its staff, extend hours of operations while on diesel and deprive staff of their overtime entitlement by refusing to pay. The best is for the airlines to continue to operate with the normal operational hours without requesting an extension.
In the face of all these, airlines have been increasing the cost of tickets over the years. For instance, a one-way ticket that was going for N15, 000 five years ago is now sold for over N180, 000. How come would they have the morale to question an agency which is operating under the same economic environment wiashem?
Miri also stated that it is not realistic and ideal for NAMA to remain charging N50, 000 for the tension of operations for an hour, saying it’s ridiculous.
“What is N50,000 to extend the hours operations and nobody wants us to increase it. You will run the generator for an hour and make contingency arrangements for the staff to be at the airport. Airlines are also abusing the privilege as they can easily afford the amount and keep staff for hours.” Since NAMA’s funds are generated from services they provide to the flying community, common sense dictates that, without these funds, AMA can’t discharge its responsibility of ensuring the safety of the airspace effectively.
For the President of NACAN, Ohammed Sani, NAMA is in dire need of funds for the continuous maintenance of its infrastructure, training of staff and payment of salaries. Additionally, there is an urgent need for upward review of charges by NAMA.
According to Sani, it is the only way that NAMA can get its revenue to improve on critical areas concerning safety, with an expenditure of over N21 billion in personnel costs alone in 2023; expenditure of over N12 billion in capital costs and over N10 billion in overhead costs in the same year, one does not need to be told that the agency needs to up his revenue generation drive, especially when it does not have any Federal Government allocation.
As .a service provider and in accordance with ICAO best practices, NAMA is a non-profit oorganisation This is well spelt out in ICAO Doc 9082 w,hich recommended cost recovery for service provision to cater for the cost of equipment, personnel, trainings and other ancillary costs. There is no doubt that this is exactly what NAMA is trying to achieve.
Section 111 part 1 in ICAO’s Policies on Charges for Air Navigation Services states that “an equitable cost-recovery system could comprise charges based on the allocation of total air navigation services costs incurred on behalf of users”.
It further added that “the establishment of the cost basis for air navigation services charges should observe the following principles: The cost to be allocated is the full cost of providing the air navigation services, including appropriate amounts for cost of capital and depreciation of assets, as well as the costs of maintenance, operation, management and administration.
“The costs to be taken into account should be those assessed in relation to the facilities and services, including satellite services, provided for and implemented under the ICAO Regional Air Navigation Plan(s), supplemented where necessary pursuant to recommendations made by the relevant ICAO Regional Air Navigation Meeting, as approved by the Council. Any other facilities and services, unless provided at the request of aircraft operators, should be excluded, as should the cost of facilities or services provided on contract or by the aircraft operators themselves, as well as any excessive construction, operation or maintenance expenditures.
“The costs of air navigation services provided during the en-route, approach and aerodrome phases of aircraft operations should be identified separately where possible”, ICAO added in its policies on charges. Be that as it may, and from all indications, the increase of NAMA charges by 800 per cent are valiinin line with global practices.
This is more so justifiable because if it was right for airlines and other aviation reaviation-related organisationse price of sethe rvices and products in response to every prevailing economic situation in the country, in order ttowhy can’t NAMA do the same to keep afloat and render safe services.
The President of Air Transport Services Senior Staff Association of Nigeria, Comrade John Ogbe, notes that the last review,s over 15 years, can no longer sustain the agency as a result of thcurrent economicic situation in the country, which has affected every aspect.
“For NAMA, there is something I observed: their navigational charges have been there for over 15 years, and the rate has not changed. Even if it is on cost recovery, the cost of providing those services 15 years ago cannot be the same thing now. Government should look into the navigational charges by NAMA, it is very important”.
Ogbe explains that a proper upward review will enable the agency to functionally carry out its responsibility and support, adding that athe absenceof navigating services will lead to safety concerns. It is, therefore, healthy for NAMA to guard jealously its source of generating revenue to survive. When this is done, with the cooperation of airlines and other stakeholders, the rapport will strengthen the industry, which will eventually lead to improved air traffic management and better service delivery.
For Dr Ibrahim Audu, President ofAeronauticall Information Management Association of Nigeria, the issue of collecting the same navigation charges 18 years after is not in consonant wconsonancen and sophisticated equipment that is being installed by NAMA in discharging its statutory responsibilities.
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