The Airline Operators of Nigeria is asking the National Assembly to abolish the current five percent Ticket, Charter and Cargo Sales Charge, describing it as outdated and unfair to domestic airlines.
Speaking on Thursday, at the House of Representatives public hearing on the proposed review of the Ticket Sales Charge sharing formula, the association, represented by former NAMA Managing Director, Captain Roland Iyayi, said the current percentage-based levy places an excessive burden on airline operators.
The AON wants the existing system replaced with a flat-rate model similar to the Passenger Service Charge collected by the Federal Airports Authority of Nigeria, arguing that it would create a level playing field for all airlines regardless of ticket prices or routes.
The association says rising aviation fuel costs have made the current charge unsustainable, noting that domestic airlines have struggled to remit the levy since March and have relied more on charter operations to remain afloat.
“Beyond the 5% charge, the AON recommends a different model. Rather than charging a percentage, we recommend adopting a structure similar to the one FAAN uses for the passenger service charge, because that creates a level playing field. Right now, the 5% is charged on everything an airline earns. I’ll give an example: since March, we’ve experienced fuel shocks worldwide. The average fuel price increase elsewhere in the world was 60–80%, but in Nigeria it was 270%. Since March, domestic airlines have not been able to pay the 5% to the NCAA. We have managed to remit only because domestic airlines are now taking on charter flights to pick up loads rather than continuing scheduled flights.”
MUST READ: Zenith Medical And Kidney Centre Recommends Breastfeeding For Every Nursing Mother
The operators also questioned how revenues collected by the Nigerian Civil Aviation Authority, NCAA, are being utilised, alleging that more than ten billion naira generated over the past two decades from mast application fees has not translated into critical infrastructure such as low-level navigation charts.
According to the AON, the absence of these charts limits aircraft utilisation, prevents low-level night helicopter operations, and reduces operational efficiency across the industry.
While supporting plans to increase NAMA’s share of aviation charges, the association urged lawmakers to undertake a broader reform of the industry’s funding framework, including the creation of a dedicated Aviation Development Fund outside the Treasury Single Account.
(Follow AIT News on WhatsApp, AfricaIndependentTV on YouTube, ait_online on Facebook and X (Formerly Twitter), and officialait on TikTok, Instagram and Threads)
(Editor: Ebuwa Omo-Osagie)
