The Chairman of Air Peace, Allen Onyema, has warned that mandatory revenue deductions from Nigeria’s aviation agencies are weakening critical infrastructure and increasing the financial burden on domestic airlines.
Onyema, who spoke at the 30th Annual Conference of the League of Airport and Aviation Correspondents (LAAC) in Lagos, urged the Federal Government to allow key agencies, including the Federal Airports Authority of Nigeria (FAAN) and the Nigeria Civil Aviation Authority (NCAA), to retain more of the revenues they generate for reinvestment in the sector.
He said the statutory deduction of between 25 and 50 per cent of revenues generated by aviation agencies was depriving them of funds required to maintain and upgrade safety-critical infrastructure.
According to Onyema, airlines are not opposed to government funding requirements but want revenues generated within the aviation ecosystem to be substantially retained and reinvested in the industry.
The Air Peace chairman said inadequate funding had left aviation agencies struggling to acquire essential operational equipment and maintain airport facilities in line with international safety standards.
He specifically cited the need for modern bird-deterrence systems and improved runway maintenance technology, warning that deficiencies in such infrastructure expose airlines to significant operational and financial risks.
Onyema said airlines eventually bear the cost of infrastructure gaps through flight disruptions, delays, cancellations and expensive aircraft repairs.
He disclosed that an Air Peace aircraft involved in a bird strike incident in Abuja incurred an emergency repair bill of $1.85 million from foreign original equipment manufacturers (OEMs).
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The incident, he said, illustrated the huge financial consequences that airlines could face when airports lack adequate systems to prevent and manage safety risks.
Onyema added that passengers often blame airlines for delays and cancellations without recognising that some disruptions are caused by infrastructure deficiencies outside the carriers’ control.
The Air Peace chairman therefore called on the Federal Government to review the revenue deduction policy and allow FAAN and NCAA to retain their full earnings for sectoral investment.
He argued that stronger financial capacity for aviation agencies would support airport infrastructure development, improve safety and reduce the operational costs borne by airlines.
Onyema maintained that protecting revenues generated within the aviation sector was critical to sustaining domestic carriers, improving passenger experience and ensuring the long-term growth of Nigeria’s aviation industry.
