Nigeria Revenue Service (Establishment) Bill has sent shockwaves through the aviation industry, with the Federal Airports Authority of Nigeria (FAAN), the Nigerian Civil Aviation Authority (NCAA), and the Nigerian Airspace Management Agency (NAMA) among the 63 Ministries, Departments, and Agencies (MDAs) that will have their revenue collection powers transferred to the Nigeria Revenue Service (NRS), reports Nigeran Tribune.
This move will significantly impact the operations of these agencies, as they will forthwith rely on federal allocations for funding, rather than generating revenue independently.
Should the plan be effectively carried out, the bill could bring improved revenue transparency, enhanced accountability, and increased efficiency, as a single revenue collection agency could streamline processes and reduce duplication of efforts.
However, industry experts have raised concerns about the potential implications of this bill.
Reacting, a retired top management staff who preferred anonymity said: “I think this will create very serious revenue challenges for NCAA, FAAN, and NAMA,” stressing that; “in my opinion, Federal Ministry of Aviation and Aerospace Development (FMA & AD) will need to get a couple of consultants to study the newly created NRS act and see how this will not impact these agencies negatively.”
But Group Captain John Ojikutu (retrd), an airport security expert, thinks differently; stating: “I don’t think so. First with FAAN, they have to do what the Commercialisation, Privatisation and Concession Act of 2000 says. Government will make more money than FAAN is reporting.”
He added that NAMA needs help, which can only come from the sharing of the 5 per cent ticket sales charge, cargo sales charge, and chartered flights charge, which are not rationally shared.
Capt Samuel Caulcrick, a financial analyst, echoed similar sentiments, highlighting the potential innovation that NCAA could adopt to mitigate the challenges.
“The present system has put both statutory charges paid by aviation operators and cost recoveries meant for personnel into one bowl,” he explained.
He further stated that: “The idea of such being paid through the NCAA accounts was to mitigate corruption by limiting money exchanges between operators and NCAA personnel.”
He suggested that NCAA could exclude non-statutory expenditures from being paid to the NRS, ensuring that only statutory charges are affected.
The implications of this bill are far-reaching, and stakeholders will be watching closely to see how the affected agencies adapt to their new funding model.
While the bill’s intentions may be to improve revenue transparency and accountability, its implementation could have unintended consequences, such as delays in fund allocation, inadequate funding, and loss of autonomy, which could hinder the ability of these agencies to respond to emerging challenges and deliver services effectively.