Unions in the Nigerian aviation industry have expressed their dissatisfaction with the compulsory 40% revenue contribution of aviation agencies to the federation account. They are calling on President Bola Ahmed Tinubu to intervene and address the long-standing issues surrounding the staff Conditions of Service (CoS) in aviation agencies. The unions argue that this mandatory contribution is negatively impacting the agencies’ performance and violating the Acts that stipulate reinvestment of revenue into the sector.
The unions stress the importance of averting a potential crisis in the aviation sector by reversing the compulsory revenue contribution.
Revenue Contribution Concerns
In a letter addressed to President Tinubu, the unions, including NUATE, ATSSSAN, ANAP, NAAPE, and AUPCTRE, highlighted their objections to the Finance Act 2022, implemented during the previous administration of President Muhammadu Buhari. They claim that this act contradicts existing legislation that mandates all generated revenue be reinvested in aviation infrastructure and human growth. The unions argue that the agencies’ full financial accruals are insufficient to meet their obligations and heavily rely on annual supplementation from the Federal Government.
Preserving Vital Functions
The unions stress the importance of averting a potential crisis in the aviation sector by reversing the compulsory revenue contribution. They emphasise that incapacitating the aviation agencies through financial constraints would jeopardise their ability to fulfil critical safety-related functions. Considering the agencies as “mere cost recovery organisations” and non-profit entities, the unions liken the deduction to removing life support from the parastatals. They make a plea to exempt aviation agencies from the contribution to ensure the continued operation of vital safety functions and avoid catastrophic consequences for the national economy.
Addressing Staff Conditions of Service
In addition to revenue concerns, the unions raise the issue of staff Conditions of Service (CoS). Despite having previously reached agreements on the matter through management-union reviews, they accuse the National Salaries, Incomes, and Wages Commission (NSIWC), the Office of the Head of Civil Service of the Federation (OHCSF), the Office of the Accountant General of the Federation, and the Budget Office of impeding progress. The unions urge President Tinubu to intervene and resolve the protracted CoS issues that have remained unresolved for many years.
The Nigerian aviation industry unions are calling for an end to the compulsory 40% revenue contribution of aviation agencies to the federation account, citing violations of existing laws and the potential negative impact on critical safety functions. They emphasise the importance of preserving the financial stability of the agencies to ensure the sector’s continued operation and avoid economic repercussions. Additionally, the unions urge President Tinubu to address the long-standing staff Conditions of Service issues that have hindered progress and caused dissatisfaction among aviation workers. By addressing these concerns, the government can work towards a more stable and thriving aviation industry in Nigeria.
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