Expert calls for FAAN’s 5% airport revenue contribution

Former General Secretary of the Aviation Safety Round Table Initiative, John Ojikutu, has called for the Federal Airports Authority of Nigeria (FAAN) to contribute a significant five per cent of its airport commercial earnings to fund aviation safety agencies. Ojikutu presented this proposal to the House Committee on Aviation, arguing that the current sharing formula for the Ticket Sales Charge, Cargo Sales Charge, and Chartered Flights Charge is neither rational nor reflective of the different responsibilities and operational demands of the agencies involved.

He proposed a comprehensive review of the distribution, taking into account factors such as the number of personnel, volume of operational equipment, geographical spread, and safety responsibilities assigned to each institution. Ojikutu emphasized that FAAN, which operates various commercial and non-aeronautical services and generates substantial revenue, should contribute to the funding of the safety system that supports the airports and the wider industry.

He also suggested a major redistribution of the existing five per cent fund, with the Nigerian Airspace Management Agency (NAMA) becoming the biggest beneficiary, with its allocation increasing from the current 22 per cent to 40 per cent.

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