Expert calls for FAAN’s 5% airport revenue contribution

Former aviation safety expert, John Ojikutu, has called on the House of Representatives to compel the Federal Airports Authority of Nigeria (FAAN) to contribute five percent of its airport commercial earnings to a shared pool funding aviation safety agencies. Ojikutu argued that the current distribution of the five percent Ticket Sales Charge, Cargo Sales Charge, and Chartered Flights Charge does not accurately reflect the different responsibilities and operational demands of each agency.

He proposed a comprehensive review of the sharing formula, taking into account factors such as the number of personnel, equipment, geographical spread, and safety responsibilities of each institution. Ojikutu emphasized that FAAN should not be treated merely as an airport infrastructure manager, as it generates substantial revenue from non-aeronautical services.

He proposed that FAAN should contribute five percent of its sales service charges to the general pool for aviation safety services. Additionally, Ojikutu suggested a redistribution of the existing five percent fund, with the Nigerian Airspace Management Agency (NAMA) receiving the largest share at 40 percent, reflecting its critical safety responsibilities and infrastructure maintenance costs.

The Nigerian Civil Aviation Authority (NCAA) should have an allocation not exceeding 40 percent, compared to its current 56 percent. Ojikutu stressed that the review should prioritize resources based on responsibility, operational exposure, and actual funding needs, ensuring that aviation safety agencies have the necessary funds to fulfill their mandates.