March 9, 2026

Aviation Union Urges Review of 50% IGR Deduction, Citing Impact on Development

By Mariam Aligbeh

The National Union of Air Transport Employees (NUATE) has called on the Federal Government to review the policy requiring aviation agencies to remit 50 per cent of their Internally Generated Revenue (IGR) into the Treasury Single Account (TSA). The union argues that the deduction is constraining funds for staff welfare, airport development, and workforce training.

Speaking to the News Agency of Nigeria (NAN) on Saturday in Lagos, the NUATE National President, Mr. Ben Nnabue, stated that the policy significantly affects four major aviation agencies. He warned that without a greater retention of revenue to manage operations, recent improvements in the sector could be jeopardised.

The agencies impacted are the Federal Airports Authority of Nigeria (FAAN), the Nigeria Civil Aviation Authority (NCAA), the Nigerian Airspace Management Agency (NAMA), and the Nigerian College of Aviation Technology (NCAT).

Mr. Nnabue acknowledged that Nigeria’s aviation sector has recorded several improvements recently. However, he maintained that the 50 per cent revenue deduction hampers the ability of agencies to fund critical infrastructure upgrades, maintain facilities, and deliver world-class airport services. “The money generated at airports should be used to upgrade infrastructure and improve operations,” he said.

Regarding the conditions of service for aviation workers, Mr. Nnabue indicated that most negotiations have been concluded. Agreements, he said, have been signed with several international airlines, including Emirates and Ethiopian Airlines, as well as ground handling companies such as Skyway Aviation Handling Company (SAHCO) and the Nigerian Aviation Handling Company (NAHCO). He added that only a few issues are currently awaiting resolution.

The union leader also raised concerns about workers’ freedom of association, urging airlines that have prevented employees from joining unions to respect this fundamental right. “When workers in an airport system cannot speak up, it is dangerous. It is both a security and safety issue because they are bottled up,” he said. He noted that the union has engaged the Ministry of Labour and the Minister of Aviation on the matter.

Furthermore, NUATE called for a mandatory review of navigation charges by NAMA every four years, arguing that periodic adjustments are necessary to sustain the agency’s operations and support staff salaries. Mr. Nnabue also emphasised the need for continuous training for airport personnel to uphold high safety and service standards.

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