The House of Representatives has stepped up efforts to overhaul Nigeria’s aviation laws, with lawmakers proposing a new revenue-sharing formula that could significantly alter how billions of naira generated from the sector’s five per cent Ticket Sales Charge and Cargo Sales Charge are distributed among aviation agencies.
The move comes against the backdrop of figures presented before lawmakers showing that the Nigeria Civil Aviation Authority received an estimated N777bn from the five per cent Ticket Sales Charge and N352bn from the Cargo Sales Charge in 2026, bringing the combined figure to about N1.129tn.
The proposed amendment is expected to review the sharing formula between aviation agencies, automate remittances to beneficiary agencies, harmonise conflicting provisions in existing aviation laws and strengthen the financial capacity of institutions responsible for safety, navigation, investigation and other critical services in the sector.
Speaker of the House of Representatives, Tajudeen Abbas, who was represented at a recent stakeholder engagement by the sponsor of the amendment bill, Sada Soli, assured stakeholders that the review was aimed at addressing long-standing structural and funding challenges within the aviation industry.
The proposed amendment has, however, stirred tension among aviation agencies, particularly the NCAA and the Nigeria Airspace Management Agency, as both institutions make competing arguments over how the revenue should be shared.
Under the existing arrangement, the NCAA has 56 per cent of the five per cent charge, while NAMA receives 22 per cent, the Nigeria Meteorological Agency gets nine per cent, the Nigerian College of Aviation Technology receives seven per cent, and the Nigerian Safety Investigation Bureau gets six per cent.
The proposed formula would reduce the NCAA’s share to 40 per cent, while increasing NAMA’s allocation from 22 per cent to 40 per cent.
While the NCAA is seeking to retain, and potentially increase, its access to the fund to strengthen regulatory and safety oversight, NAMA has argued that its expanding operational responsibilities, infrastructure needs and ageing facilities require a larger share of the same pool.
Speaking at the stakeholders’ forum, Soli said the proposed reform was not designed to deprive any agency of resources, but to create what he described as a more equitable and transparent financial framework for the aviation sector.
He said lawmakers had listened to the concerns raised during the public hearing and were determined to address gaps in the existing legislation. Soli 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 are now becoming clearer.”
According to him, the proposed legislation is targeted at ensuring that Nigeria’s aviation laws and institutions close ranks with international best practices. “We are changing the law and changing the name of AIB to NSIB to align with international best practice. We are trying to control the financing and block leakages and corruption,” he said.
Soli said the scale of the revenue involved made it expedient for lawmakers to ensure that the money was properly accounted for and channelled towards improving aviation infrastructure and safety.