The Federal Government has finally addressed the concerns raised by aviation unions about deducting 50 per cent of aviation agencies’ Internally Generated Revenue.
Impeccable sources at the Federal Ministry of Finance revealed that the Federal Government recently met with the aviation unions on the concern, which had lingered for months.
At the meeting, our correspondent gathered that the unions proposed that aviation agencies should be allowed to retain 70 percent of the various IGRs.
It was further gathered that the government agreed to address the unions’ demands regarding the sharing formula for Internally Generated Revenue within the aviation sector.
Multiple sources confirmed that the unions were pushing for a 70:30 revenue-sharing formula, where 70 per cent of the revenue would go to aviation agencies and 30 per cent to the Federal Government.
However, the finance ministry proposed a 60:40 formula instead, according to sources familiar with the development.
“The unions want 70 per cent to go to the agencies while 30 per cent goes to the Federal Government,” a source who spoke in confidence due to lack of authorisation to speak on the matter, stated.
“But the office of the Minister of Finance is saying that it is 60 per cent and 40 per cent that will fly,” the source noted.
Despite the differing positions, the Federal Government has reportedly assured the unions of a resolution. “They promised the unions that there won’t be any problem,” another source stated.
While the final decision on the revenue-sharing formula remains unclear, the source noted that the unions are holding onto their demand for a 70:30 split. “I do not know what the final verdict will be, but I’m sure the unions are expecting 70 per cent and 30 per cent.”
In September 2024, unions in the air transport sector voiced concerns about the continued deduction of 50 per cent from the IGR of aviation agencies, stating that they had concluded plans to embark on a peaceful protest over the issue.
“All workers of the Nigerian Civil Aviation Authority, Federal Airports Authority of Nigeria, Nigerian Airspace Management Agency, Nigerian Meteorological Agency, Nigerian College of Aviation Technology, and Nigerian Safety Investigation Bureau, joint solidarity of all aviation workers are hereby directed to embark on peaceful protests at all airports nationwide on September 18, 2024, to demand the discontinuation of deduction of 50 per cent from the IGR of the agencies mentioned above through an exemption,” the unions had declared in a statement.
The statement added, “All efforts on our part have failed to impress upon the Federal Government that all the agencies are cost recovery, and not profit making, organizations.
“As such, they cannot survive on half of their incomes under any model of administration or any other guise whatsoever. The ultimatum given to the Minister of Aviation on the same has expired since the end of August 2024.”
Hours after that, the unions suspended their planned peaceful protest against the government in a statement that read, “Consequent upon information available to us about an ongoing discussion by higher authorities over the continued deduction of 50 per cent by the Federal Government, I hasten to inform our esteemed members that the planned protest scheduled for 18/09/2024 is hereby suspended pending the outcome of the discussion which we shall communicate appropriately to you all.”
