Aviation unions recently received reassurance from the Minister for Aviation and Aerospace Development, Festus Keyamo, regarding their ongoing concerns about revenue deductions from aviation agencies. Nnadi Hector, Secretary of the Joint Aviation Trade Unions Forum, reported that during a recent meeting, the minister demonstrated his commitment to resolving the unions’ demands. Keyamo has proactively involved both the Minister of Finance and the President to address these issues. Hector stated that the union leaders engaged in a private discussion with the minister, who expressed optimism about achieving a satisfactory resolution. Acknowledging the gravity of the situation, Keyamo has also indicated a willingness to come to a temporary agreement with the unions until a complete solution is established.
The primary contention of the aviation unions is the complete cessation of revenue generation deductions from the aviation sector. They argue that aviation should be viewed as a service industry rather than a revenue-generating entity. Hector emphasized that organizations such as the Nigerian Safety Investigation Bureau (NSIB) should not be burdened by revenue deductions that effectively handicap their operational capabilities. The unions firmly conveyed to the minister that the aviation sector operates primarily to provide services and not to generate surplus revenue, urging a reevaluation of the current financial policies affecting their industry.
In light of these discussions, Keyamo is reviewing the unions’ concerns with an open mind and a focus on objectivity. Hector noted that the minister is nearing the conclusion of negotiations, acknowledging the unions’ overarching goal of reaching a definitive agreement that addresses their grievances. The unions anticipate that the measures discussed might be temporary, with the government planning to disseminate either a circular or letter to clarify the decisions made. This communication is expected to inform the unions of any interim changes that will ease the financial strain introduced by the revenue deductions.
The unions had initially intended to hold a peaceful protest on September 18 in response to the government’s ongoing refusal to reverse a controversial policy that instituted a 50 percent deduction from the internally generated revenues of aviation agencies. The protests epitomized the unions’ discontent regarding the existing policies and their detrimental impact on crucial aviation operations. The unions aim to halt deductions from various agencies, including the Nigeria Civil Aviation Authority (NCAA), the Federal Airports Authority of Nigeria (FAAN), as well as several other aviation institutions that play vital roles in the sector.
The implementation of the Treasury Single Account (TSA) policy marked a significant shift in the financial landscape for aviation agencies, initially imposing a 25 percent revenue deduction back in October 2022, which was subsequently increased to 40 percent. This adjustment has exacerbated the financial challenges faced by these agencies and fundamentally changed the way they operate financially. The unions’ response to these escalating deductions reflects their desperation to protect the integrity and functionality of the aviation sector amidst increasing governmental financial constraints.
Looking ahead, the aviation unions remain hopeful that the minister will deliver a favorable resolution that will alleviate their concerns regarding revenue deductions. They expect a formal letter outlining the government’s position and detailing any proposed solutions to be issued by the end of the following week. Such communication would ideally clarify the future of the aviation sector in Nigeria and inform unions on the interim measures that will be enacted before a more permanent resolution is finalized. As discussions continue, the unions reaffirm their commitment to advocating for the recognition of aviation as a service-driven entity, urging government stakeholders to align financial policies with the needs and realities of the industry.
