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Air Peace Chairman Allen Onyema has called on the Federal Government to end mandatory revenue deductions from key aviation agencies, warning that the policy is depriving FAAN and NCAA of funds needed to maintain critical infrastructure and sustain safety standards across Nigerian airports.
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Onyema said deductions of between 25 and 50 per cent of revenues generated by aviation agencies are starving the sector of resources, arguing that the money should remain within the aviation ecosystem for airport upgrades, regulatory operations and other safety-critical investments.
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The airline boss linked poor funding of aviation infrastructure to operational disruptions and rising costs for domestic carriers, saying airlines are often blamed for delays and cancellations caused by deficiencies beyond their control, while carriers are forced to absorb huge repair and maintenance bills.
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He cited a $1.85 million repair bill incurred by Air Peace after a bird strike in Abuja, arguing that stronger investment in modern bird-deterrence systems, runway maintenance technology and other airport safety infrastructure would reduce such incidents and protect airlines and passengers.
September 11, (THEWILL) – The Chairman of Air Peace, Allen Onyema, has urged the Federal Government to halt the mandatory deduction of revenues generated by critical aviation agencies, warning that the policy is weakening the infrastructure required to guarantee safe and efficient air travel in Nigeria.
Onyema made the call while speaking at the 30th Annual Conference of the League of Airport and Aviation Correspondents (LAAC) in Lagos, where he raised concerns over the financial condition of agencies responsible for airport management and civil aviation regulation.
He specifically faulted the statutory remittance of between 25 and 50 percent of revenues collected by agencies such as the Federal Airports Authority of Nigeria (FAAN) and the Nigeria Civil Aviation Authority (NCAA).
According to him, the deductions are depriving the agencies of resources that should ordinarily be reinvested in aviation infrastructure, operational equipment and safety systems.
The Air Peace boss stressed that domestic airlines were not opposed to government funding or the agencies’ statutory obligations, but argued that aviation-generated revenues should largely remain within the sector to support its development.
He warned that removing a substantial portion of the agencies’ internally generated funds could accelerate the deterioration of aviation infrastructure and ultimately place additional financial and operational burdens on airlines.
Onyema said the consequences were already being felt across the sector, particularly in areas requiring continuous investment in airport safety and operational infrastructure.
He cited the inability of aviation authorities to acquire and deploy adequate modern bird-deterrence systems as one example of the consequences of inadequate funding.
Bird strikes remain a serious aviation safety concern because they can damage aircraft engines, windscreens, wings and other critical components, potentially forcing aircraft out of service and disrupting flight schedules.
Onyema disclosed that an Air Peace aircraft involved in a bird strike in Abuja incurred an emergency repair bill of $1.85 million, with the cost billed by foreign Original Equipment Manufacturers (OEMs).
He argued that such costs could have significant consequences for domestic airlines already operating in a challenging environment, particularly when infrastructure deficiencies contribute to incidents that result in expensive aircraft repairs.
Beyond the immediate financial cost, he said inadequate infrastructure also contributes to flight delays and cancellations, with passengers frequently directing their frustration at airlines even when the underlying problem originates from shortcomings in airport facilities or government-operated systems.
The airline chairman maintained that carriers are often forced to bear the consequences of weaknesses in infrastructure over which they have little or no control.
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He, therefore, called for a fundamental review of the revenue-remittance arrangement affecting aviation agencies.
According to Onyema, allowing agencies such as FAAN and NCAA to retain their full earnings would give them the financial capacity to invest consistently in infrastructure, safety equipment and modern technologies.
He said the objective should not merely be to increase government revenue but to ensure that funds generated by the aviation industry are deployed in ways that strengthen the same sector from which they are collected.
The Air Peace chairman warned that failure to address the funding structure could have wider implications for the sustainability of domestic airlines.
He noted that airlines already face substantial operational expenses, including aircraft maintenance, fuel, insurance and other costs, while infrastructure-related deficiencies can create additional and avoidable financial pressures.
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