NRS Bill Sparks Concern Across Aviation Sector as FAAN, NCAA, NAMA Face Revenue Shake-Up

The proposed Nigeria Revenue Service (Establishment) Bill is stirring anxiety in the aviation industry, as it seeks to centralize revenue collection from 63 Ministries, Departments, and Agencies (MDAs), including key aviation bodies such as the Federal Airports Authority of Nigeria (FAAN), the Nigerian Civil Aviation Authority (NCAA), and the Nigerian Airspace Management Agency (NAMA).

Under the new arrangement, these agencies would no longer collect revenue directly but rely on federal allocations. While the move aims to improve transparency, streamline revenue processes, and reduce duplications, it raises critical concerns about the financial stability and operational independence of the affected agencies.

A retired senior official in the aviation sector, who requested anonymity, voiced deep concerns over the bill’s implications.

“I think this will create very serious revenue challenges for NCAA, FAAN, and NAMA,” the official said. “In my opinion, Federal Ministry of Aviation and Aerospace Development (FMA & AD) will need to get a couple of consultants to study the newly created NRS act and see how this will not impact these agencies negatively.”

However, not all industry voices agree with this assessment. Retired Group Captain John Ojikutu, a respected airport security expert, offered a contrasting view.

“I don’t think so. First with FAAN, they have to do what the Commercialisation, Privatisation and Concession Act of 2000 says. Government will make more money than FAAN is reporting,” he argued.

He also stressed that NAMA’s challenges could be better addressed by re-examining the distribution of charges such as the 5% ticket sales charge, cargo sales charge, and chartered flight charge—currently not shared in a rational manner.

Financial analyst and former pilot, Capt. Samuel Caulcrick, also weighed in on the discussion, focusing on the operational structure of NCAA.

“The present system has put both statutory charges paid by aviation operators and cost recoveries meant for personnel into one bowl,” he explained.

He noted that routing these funds through NCAA accounts was initially intended to curb corruption by minimizing direct financial interactions between operators and personnel.

Caulcrick suggested a way forward: “NCAA could exclude non-statutory expenditures from being paid to the NRS, ensuring that only statutory charges are affected.”

As stakeholders continue to examine the far-reaching implications of the bill, concerns remain about how these critical aviation agencies will cope with delayed allocations, reduced funding autonomy, and possible bureaucratic bottlenecks.

While the bill promises improved accountability, experts warn that its execution must be carefully managed to avoid disrupting essential aviation services or weakening regulatory and safety oversight.