NAMA Seeks Exemption Of Aviation Agencies From Treasury Single Account

October 27, 2023

The Nigerian Airspace Management Agency (NAMA) has added its voice to the growing call by aviation agencies seeking exemption from the Treasury Single Account (TSA).

This controversial policy has been a contentious issue for the sector, leading NAMA’s Managing Director, Mohammed Odunowo, to argue that it’s acting as a brake on aviation development.

Join our WhatsApp Channel

Odunowo, frustrated with the bureaucratic red tape, declared, “The mechanism of remittance to the TSA is not the challenge, but of the long-winding process and delays in accessing remitted funds for critical expenditure – especially in a sector where time is of essence.”

NAMA’s call follows that of the Federal Airports Authority of Nigeria (FAAN), which has lobbied the Federal Government to release it from remitting 25% of its Internally Generated Revenue (IGR) to the Federation Account.

READ ALSO: Tinubu Withdraws FCTA From Treasury Single Account, Gives Wike Financial Authority

Recent developments, such as President Bola Tinubu exempting the Federal Capital Territory Administration (FCTA) from the TSA policy, aim to unlock the potential of internally generated revenue for the development of critical infrastructure. In the eyes of Odunowo, the aviation industry’s growth hinges on unhindered access to its earnings and the ability to reinvest in its operations.

He emphasized, “We have issues of debt from our service areas. Let me paint a picture. For an hour of operation at Ilorin Airport, the charge is N50,000. But the airport does not have power, so we run on generators. That costs about N500,000 in operating costs per hour. That is a challenge for us.”

In addition to calling for financial liberation, Lawrence Pwajok, Director of Operations at NAMA, advocated airport concessioning as a means to enhance financial viability and promote equitable service charges among agencies.

Meanwhile, NAMA has embarked on a journey toward modernization through system automation. Central to this transformation is the shift from conventional ground-based navigation to sophisticated satellite-based navigation, made possible by Automatic Dependent Surveillance–Broadcast (ADS-B).

This cutting-edge technology empowers aircraft to ascertain their positions through satellite navigation and periodically broadcast this information, improving situational awareness and air traffic management.

“Automation is crucial for ANSPs. It forms our lifeline. The U.S., with its NextGen program, successfully shifted from ground to satellite-based ADS-B, leveraging GPS superiority.”

NAMA is taking steps to bolster Nigeria’s position in this modernization race by deploying fiber infrastructure across its 46 stations in collaboration with Galaxy Backbone, a high-capacity network infrastructure provider. This not only supports ADS-B but also ensures robust data transmission, reliability, and comprehensive coverage.

emmmmmm
+ posts

Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

Emmanuel Ochayi

Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

Stock Exchange
Previous Story

MTNN, 28 Stocks Deepen Market Woes With 0.2% As Capitalization Declined By N66bn

Nigeria’s Inflation Hits 33.69% In April As Costs Of Food, Others Continue To Rise
Next Story

Stears Predicts 30% Inflation Rate

Featured Stories

Latest from Business News

Fuel Subsidy: World Bank Must Allow Africa’s Poor Breathe

World Bank Flags Taxes, Bribery as Constraints on Kenya Businesses

Written by Amanze Chinonye Kenya’s private sector faces higher costs and uncertainty from multiple taxes, regulatory hurdles and bribery, the World Bank said on Thursday, warning that the constraints are weighing on investment and business growth. While Kenya’s corporate income tax rate is

Rwanda Expands Fuel Imports Through Mombasa under Kenya Deal

Written by Amanze Chinonye Rwanda has begun importing bulk refined petroleum products through Kenya’s Mombasa port under a new government-to-government arrangement aimed at diversifying its fuel supply routes and strengthening energy security, with the first 40,000-tonne cargo arriving this week. Join our WhatsApp

Wealth Without Access is Stranded Wealth – Opiva Capital Chairman 

Written by Kamsiyochukwu Mbamalu The Chairman of Optiva Capital Partners, Franklin Nechi, has called on African entrepreneurs, investors and families to move beyond traditional wealth accumulation and embrace global access as a strategic tool for business growth, family security and intergenerational legacy. Nechi
Stock Exchange
Previous Story

MTNN, 28 Stocks Deepen Market Woes With 0.2% As Capitalization Declined By N66bn

Nigeria’s Inflation Hits 33.69% In April As Costs Of Food, Others Continue To Rise
Next Story

Stears Predicts 30% Inflation Rate

Don't Miss

Lagos Gov Sanwo-olu Under Fire Over ‘N7.5m Fragrance, N18m Christmas Chickens’

Sanwo-Olu Commissions Lagos Electricity Regulatory Board to Reform Power Sector

Governor Babajide Sanwo‑Olu on Monday, inaugurated the five-member Board of

PFIPC Controversy: Adeyemi Insists on Court Vindication Amid Presidency’s Fraud Allegations

Prince Adeniyi Adeyemi, the central figure in the dispute over