NCAA Urged to Seek Additional Funding Amid Financial Crisis

Stakeholders have called on the Nigerian Civil Aviation Authority (NCAA) to pursue additional funding sources to mitigate its financial crisis. This crisis has been intensified by high inflation and exchange rates, which undermine airline profitability.

The NCAA currently relies on a 5% ticket sale charge and cargo sale charge, which is shared among four aviation agencies. However, this revenue is insufficient to cover the agency's expanding operational costs, including personnel training and regulatory functions.

The situation worsened during the Middle East crisis when airlines struggled to meet their financial obligations. Additionally, the National Assembly is reviewing the distribution of the 5% ticket sale charge, potentially reducing NCAA's share from 56% to 40%, which could impair its ability to fulfill regulatory duties.

Captain Ado Sanusi, Chief Executive Officer of Aero Contractors, emphasized that the NCAA's financial dependency on airlines is precarious and suggested that the agency needs to diversify its revenue beyond current earnings.