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NCAA projects ₦1.129 trillion from TSC, CSC in 2026
- Lawmakers move to overhaul revenue formula
Tension is mounting across Nigeria’s aviation sector as the National Assembly considers an amendment bill to overhaul the revenue-sharing formula for the 5% Ticket Sales Charge (TSC) and Cargo Sales Charge (CSC).
This is coming as the Nigeria Civil Aviation Authority (NCAA) projects a total yield of ₦1.129 trillion from both charges in 2026, comprising ₦777 billion from the TSC and ₦352 billion from the CSC, according to its financial framework presented to lawmakers.
The details were disclosed over the weekend during a House of Representatives public hearing on the proposed amendment to the revenue-sharing framework.
Speaking on behalf of the Speaker of the House, Tajudeen Abbas, the bill’s sponsor, Hon. Sada Soli, assured stakeholders that the legislature aims to balance investments, eliminate administrative bottlenecks, and block financial leakages across the industry.
He said, “I am happy so many things have come out of this public hearing. I am happy that the areas we are set to amend. We are changing the law, changing the name of AIB to NSIB to align with international best practice.
“We are trying to control the financing and trying to block leakages and corruption. When I look at the financial framework of the NCAA, what they presented to the Committee for 5% TSC for 2026 was N777 billion. The 5% for Cargo charges, that is CSC, was N352 billion. That was the fiscal framework that was approved by the Committee on Aviation.”
“In some of ICAO’s recommendations for aviation, they are talking of cost recovery for the aviation ecosystem. What we are doing here is to bring equity to balancing investment in the aviation industry by not shortchanging A, B, or C. The attempt is to align with what ICAO is advocating by balancing costs so that there will be equity in the aviation ecosystem and safety in the aviation industry. We are not trying to shortchange any agency but to bring equity to the system.”
Beyond redistributing the TSC/CSC allocations, the proposed legislation introduces major structural changes such as automated disbursement which directs immediate, automated revenue deductions through the Central Bank of Nigeria (CBN) to ensure real-time, transparent disbursement and eliminate administrative corruption, incorporating a review of obstacles, obstructions, and height clearance assessment fees, and changing the name of the former Accident Investigation Bureau (AIB) to the Nigerian Safety Investigation Bureau (NSIB) to align with international best practices.
Addressing the hearing, Soli cited the International Civil Aviation Organisation (ICAO) policy on cost recovery, which mandates that user charges for airports and navigation services remain transparent, non-discriminatory, and cost-related.
“We are trying to control the financing and block leakages and corruption,” Soli stated. “The attempt is to align with what ICAO is advocating by trying to balance cost so that there will be equity in the aviation ecosystem and guarantee safety. We are not trying to shortchange any agency, but to bring equity to the system.”
The regulatory agency’s leadership strongly resisted any cut to its current allocation. Appearing at the hearing, the Director-General of Civil Aviation (DGCA), Capt. Chris Najomo, formally demanded the restoration of the NCAA’s original 65% share of the 5% charges.
Najomo argued that, unlike operational service providers, the NCAA generates no direct commercial revenue and relies heavily on the charge to fund safety oversight, regulatory inspections, personnel training, and ICAO compliance.
The funding debate unfolds alongside growing concerns over unremitted funds from airlines. Capt. Roland Iyayi, a member of the Board of Trustees of the Airline Operators of Nigeria (AON) and President of Top Brass Aviation Limited, challenged the sector to publicly disclose total airline debts alongside actual yearly collection figures.
Meanwhile, the NCAA is currently enforcing debt reconciliation mechanisms against domestic airlines and handling firms over unremitted charges totalling tens of billions of naira and millions of US dollars.
Conversely, the Nigerian Airspace Management Agency (NAMA) pushed for a revised allocation, backing the proposed amendment that redistributes the agency’s share to 56%.
NAMA Managing Director, Engr. Farouk Ahmed Umar, described NAMA as the operational backbone of the national airspace.
He noted that while the NCAA enforces regulatory standards, NAMA provides the communication, navigation, and surveillance infrastructure essential for every takeoff and landing.
While the NCAA has expressed opposition over safety framework concerns, the proposed amendment to redistribute allocations to 56% is vital to ensuring NAMA’s financial sustainability and operational efficiency,” Umar said.
“NAMA therefore asks for a fair and transparent arrangement. NCAA should retain the regulatory component of the Aviation Height Clearance. NAMA should be paid for obstacle registration, the identified technical-services component for WGS-84 survey validation, obstacle assessment, procedure-impact analysis, and fieldwork, and such fee should be remitted directly to NAMA.
“In accordance with ICAO’s cost-recovery model, the revenue is to maintain the equipment, data, software and trained professionals that make the clearance technically meaningful. We are therefore recommending a sharing formula of 90% to 10% in favour of NAMA.”
He further stated that a properly funded NAMA produces benefits far beyond the agency, adding that reliable communication and surveillance permit efficient separation.
“Modern procedures can shorten routes and approaches. Better availability reduces disruption. Stronger systems support airlines, airports, passengers, trade, tourism and national security coordination. An aircraft that moves safely and efficiently through Nigerian airspace is an economic activity enabled by invisible infrastructure.”
Umar also commended the Minister of Aviation and Aerospace Development, Festus Keyamo, describing his non-interfering leadership style and targeted government interventions as key factors in strengthening NAMA’s airspace management capabilities.
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