NAMA Raises Alarm Over Local Airlines’ Debt, Seeks TSA Exemption

The Nigerian Airspace Management Agency (NAMA) has raised the alarm over huge debt local airlines are owing the agency.
The airlines are heavily indebted to NAMA for terminal and navigational fees, saying, the agency may soon collapse if the debts owing the agency was not paid back swiftly.
Speaking to members of the League of Airports and Aviation Correspondents (LAAC), over the weekend, the managing director of NAMA, Toyib Odunowo, said the debt is strangulating the agency. The NAMA boss, however, called on the federal government to exit the agency from the Treasury Single Account (TSA).
According to him, if exited from the TSA, they would be able to perform their functions optimally.
“We have issues of debt, we are bleeding and airlines are owing us a lot of money. The last time we reviewed our tariff was 10 years ago.
“The challenge we have is that government deduct 40 per cent of money paid to us by our client. So, at the end of the day what comes to us is 60 per cent and when we want to expend the 60 per cent, we pay VAT, withholding tax, stamp duty and so on. The value we get from that money is insignificant so, if we are removed from the TSA, we will manage our resources the best way possible and it will help the industry.
“We should be given the leeway to open our accounts anywhere we want since it will be in Nigeria,” he advised.
The NAMA boss also sought for the establishment of Airport Development Trust Fund as done in the United States of America.
“In 1970, in the USA they started the Airway and Airport Trust Fund. It was started by Federal Airports Authority (FAA). They want to improve the infrastructure of the aviation sector and then, it was the local government that were entrusted to maintain the public airports.
“As time went on, the government realised that the costs were enormous so they transitioned and focused only on the airside. The airway broke away and they transitioned to Airport Improvement Program (AIP). That is what is obtainable till today and the fund in this trust fund is worth billions of dollars,” Odunowo stated.
He continued that, “the funds were drawn from cargo charges and government warehouse them and give it out as a grant. America has over 20,000 airports and over 5,400 are public and over 14,000 are private airports. Public airports are being funded every quarter through the fund and they share to all the public airports.
“We want to grow and we need to grow the industry because our industry are still at the incubation stage. We need the support from the government. We plead and beg for it. If that should occur we will thrive and that is what we are agitating for because it’s affecting and strangulating us.”