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 five percent of its airport commercial earnings to the aviation safety funding pool. Addressing the House Committee on Aviation, Ojikutu argued that the existing sharing formula for the five percent Ticket Sales Charge, Cargo Sales Charge, and Chartered Flights Charge fails to account for the different responsibilities and operational demands of agencies like the Nigeria Civil Aviation Authority, Nigerian Airspace Management Agency, and the Nigerian College of Aviation Technology.

Ojikutu proposed a comprehensive review of the formula, taking into consideration factors such as the number of personnel, volume of operational equipment, geographical spread, and safety responsibilities. He maintained that FAAN, which operates various commercial and non-aeronautical services generating substantial revenue, should contribute to the aviation safety funding.

This includes services such as passenger terminal operations, aircraft landing and parking charges, cargo operations, and various commercial activities within airport facilities. Ojikutu suggested a redistribution of the existing five percent fund, recommending an increased allocation for the Nigerian Airspace Management Agency (NAMA) from the current 22 percent to 40 percent.

NAMA is responsible for air traffic control, navigation, and maintaining critical safety infrastructure. Ojikutu warned that inadequate funding could lead to delays in equipment maintenance, replacement, and calibration, posing risks to aviation safety. He also proposed a reduction in the Nigerian Civil Aviation Authority's share from its current 56 percent to 40 percent, citing its additional revenue sources apart from the five percent aviation charges.

Ojikutu emphasized that the proposed changes aim to ensure that aviation safety funding follows responsibility, operational exposure, and actual funding needs, rather than adhering to an outdated sharing formula.