Stakeholders in Nigeria’s aviation industry have raised concerns over the financial health of key aviation agencies, warning that continued deductions from their internally generated revenue into the federal government’s Consolidated Revenue Fund (CRF) could cripple operations and push some agencies toward insolvency.

Industry sources said the Federal Airports Authority of Nigeria (FAAN), the Nigeria Civil Aviation Authority (NCAA), and the Nigeria Airspace Management Agency (NAMA) are struggling financially due to the government’s policy of deducting a significant portion of their earnings at source.

According to the sources, the deductions have weakened the agencies’ capacity to execute critical projects, maintain essential infrastructure, and meet obligations such as staff salaries and allowances.

FAAN reportedly remitted over N281.8 million to the CRF in 2024 under the federal government’s 50 per cent revenue remittance policy for revenue-generating agencies. The authority also paid N150.4 billion into the fund in 2025.

Similarly, NCAA was expected to remit N372.23 billion in 2024 but reportedly transferred N218 billion to the federal government. NAMA officials also lamented that the remittances have left the agency financially constrained, affecting its ability to maintain and upgrade critical air navigation infrastructure.

A senior NAMA official said the agency relies heavily on diesel-powered facilities due to unreliable electricity supply and requires substantial funding to sustain communication systems, radar infrastructure and navigation equipment essential for safe flight operations.

The official argued that aviation agencies are not profit-making institutions but operate on a cost-recovery basis, stressing that the International Civil Aviation Organisation (ICAO) recommends that revenue generated within the aviation sector should be reinvested into the industry.

The Secretary-General of the Association of Nigerian Aviation Professionals (ANAP), Saidu Abdulrasaq, urged the federal government to halt the deductions, noting that aviation agencies require additional funding rather than revenue cuts to improve infrastructure and service delivery.

Former NCAA Director-General, Captain Musa Nuhu, also maintained that the NCAA should not be classified as a revenue-generating agency, explaining that its charges are designed to recover operational costs rather than generate profits.

Nuhu further called for a review of the Nigeria Civil Aviation Act to reflect current realities in the aviation industry, while advocating a structured repayment arrangement for airlines owing the agency statutory charges.

While some industry observers have called for greater transparency in the agencies’ revenue reporting, aviation stakeholders insist that the financial strain on the agencies threatens safety, operational efficiency and the long-term development of Nigeria’s aviation sector.