…..Unions to Convene in Lagos to Plan Action Against 50% Withdrawal from Agency Funds
The Federal Government’s 50% deduction from some aviation agencies’ Internally Generated Revenue (IGR) has prompted the General Secretaries of unions in the sector to schedule a meeting in Lagos next week to discuss appropriate action.
The Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) has warned that aviation unions may resort to industrial action to pressure the government to exempt the agencies from the Treasury Single Account (TSA).
At the National Executive Council ‘Ibadan 2024’ with the theme ‘Challenges of Labour Unions In A Depressing Economy: Aviation Sector In View,’ ATSSSAN President Barr. Ahmadu Illitrus stated that the General Secretaries of major unions in the sector have been directed to meet and discuss the issue, with feedback to be given to their respective union presidents.
The TSA, implemented on October 15, 2022, initially deducted 25% from all Federal Government revenue-generating agencies, including four aviation agencies.
The deduction was later increased to 40%, and then 50% by President Bola Tinubu in January 2024.
The four affected aviation agencies are the Nigeria Civil Aviation Authority (NCAA), Federal Airports Authority of Nigeria (FAAN), Nigerian Airspace Management Agency (NAMA), and Nigerian College of Aviation Technology (NCAT).
Illitrus argued that aviation agencies should not be treated as revenue-generating organizations, as they do not make profits but instead charge for services.
He cautioned that the continuous deduction of the agencies’ funds could negatively impact the upcoming International Civil Aviation Organisation (ICAO) security audit and is against the ICAO Document 1982 on charges and cost recovery.
ATSSSAN has been advocating for the removal of aviation agencies from TSA remittance under the Fiscal Responsibility Act, citing the ICAO Document 1982, which specifies that charges imposed on organizations in the sector should recover costs, not generate profits.
