50% deduction may cause industrial unrest in aviation sector
Festus Keyamo,Minister of Aviation and Aerospace Development
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Aviations unions are not taking it lightly the decision of the government to force some aviation agencies to remit 50% of their internally generated revenue to the Treasury Single Account(TSA) They have decided that their various General Secretary are to meet next week to deliberate on the matter and take firm decision to stop the government from further implementation of the order. Already,the Air Transport Services Senior Staff Association of Nigeria(ATSSSAN) has issued a warning that if the government is adamant, its members will withdraw their service. The position of the Association was made known at Ibadan by its President Barr Ahmadu Illitrus while speaking at the National Executive Council themed” Challenges of Labour Unions In A Depressing Economy:Aviation Sector In View” Initially,the deduction which was introduced on October 15,2022 was 25%.It was later hiked to forty percent and later President Bola Ahmed Tinubu reviewed it upward to fifty per cent in January this year. Four aviation agencies are affected by the TSA policy; they are the Nigeria Civil Aviation Authority (NCAA), Federal Airports Authority of Nigeria (FAAN), Nigerian Airspace Management Agency (NAMA) and the Nigerian College of Aviation Technology (NCAT). Illitrus insisted that the agencies in the sector were not revenue generating organisations and wondered why they should be treated as such. The ATSSSAN President warned that if the aviation agencies were not removed, Nigeria may slide further in the forthcoming International Civil Aviation Organisation (ICAO) security audit “The the continuous deduction of the agencies’ funds is against the ICAO Document 1982 on charges and cost recovery”. “The document specifies that charges imposed on organisations in the sector should be to recover costs, not necessarily to make profit” that the agencies have been following this document to the letter.” “This issue to me is an existential one in the industry. We have been on this matter and have written several letters in the past to the government, explaining why the aviation agencies should be removed from the remittance of their IGRs under the Fiscal Responsibility Act.” Illistrus said that ATSSSAN reasons were very clear in that, in aviation,” what we do as government agencies, we don’t make profit per sey, we charge for services.” He disclosed that the unions took this issue with the immediate past minister of aviation Sen. Hadi Sirika. “The moment Mr. Festus Keyamo was appointed as the new minister for the sector, we tabled this matter before him and in our interactions, he gave us his words that something was going to be done about it.” “As I speak to you, the implementation of that 50 per cent has commenced and the agencies are groaning because of the dire resources.” “ Worst of it all is that their accounts were blocked and another TSA account was opened for them. They” “They were unable to access funds to service their various operations. Agencies like NAMA, NCAA, NCAT. Even where students’ school fees go into, which include feeding money, the 50 per cent is deducted.”
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