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Home The business traveller & hospitality

Unpaid ticket levies threaten funding for Nigeria’s aviation agencies

by Oluwadarasimi Omiyale
July 9, 2026
in The business traveller & hospitality
Unpaid ticket levies threaten funding for Nigeria's aviation agencies

Aviation workers’ unions have given domestic airlines 14 days to remit outstanding five per cent Ticket Sales Charges (TSC) collected from passengers, warning that continued non-remittance could further strain the finances of aviation agencies responsible for safety oversight and air navigation services.

The ultimatum was jointly issued by the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) and the National Union of Air Transport Employees (NUATE), which accused airlines of withholding statutory charges collected on behalf of the Federal Government. The unions warned that failure to comply within the stipulated period could lead to further action.

The five per cent Ticket Sales Charge is a statutory levy collected by airlines as part of every passenger ticket. Under the current sharing formula, 56 per cent of the proceeds goes to the Nigeria Civil Aviation Authority (NCAA), 22 per cent to the Nigerian Airspace Management Agency (NAMA), while the balance is shared among the Nigerian Meteorological Agency (NiMet), the Nigerian College of Aviation Technology (NCAT) and the Nigerian Safety Investigation Bureau (NSIB).

The unions said the outstanding remittances have affected the financial position of the agencies, limiting their ability to fund critical activities such as air navigation services, safety inspections, weather services, aviation training and accident investigation.

The latest development follows recent debates over the proposed review of the Ticket Sales Charge sharing formula. The NCAA had warned that reducing its statutory allocation could weaken aviation safety oversight, while NAMA argued that higher maintenance costs, imported equipment and foreign exchange pressures justified a larger share of the fund.

The dispute also comes as aviation agencies face high costs of maintaining navigation equipment, safety oversight and airport infrastructure. Both the NCAA and NAMA have maintained that adequate funding remains essential to sustaining safe and efficient air transport operations.

Airline Operators of Nigeria (AON) had earlier argued that domestic airlines should no longer serve as collection agents for the Ticket Sales Charge. The operators called on the Federal Government to establish a direct collection system, maintaining that the current arrangement places additional financial and administrative burdens on airlines already contending with high operating costs.

The unions, however, insisted that regardless of ongoing discussions over the collection process or the sharing formula, statutory charges already collected from passengers should be remitted promptly to the appropriate agencies.

The disagreement adds another layer to the broader debate over aviation funding, with stakeholders seeking a balance between maintaining financially sustainable airlines and ensuring regulators and service providers receive adequate resources to carry out their statutory responsibilities.

The unions said airlines have 14 days to comply with the directive, while discussions over the future of the Ticket Sales Charge framework continue among aviation stakeholders and lawmakers.

Oluwadarasimi Omiyale
Oluwadarasimi Omiyale
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