Why NAMA increases charges by 800% – Umar Farouk

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Ime Akpan

The managing director of the Nigerian Airspace Management Agency (NAMA), Mr Umar Farouk, said the proposed increase in the agency’s fees and navigational charges is meant to enable it survive the challenging macro-economic environment.

Speaking at the 28th edition of the Annual League of Airport and Aviation Correspondents (LAAC) held in Lagos, Ahmed said the agency’s fees and charges had remained the same over the years while most costs in the economy have increased by more than 1,000 per cent.

“The new unit rate/minimum charge for en-route is N18, 000 from N2, 000 per flight while the new unit rate/minimum charge for terminal navigation charge (TCN domestic) is N54, 000 from N6, 000 per flight with effect from the 1st of September, 2024.

“Also, the extension of hours of service is also to be reviewed from N50, 000 to N450, 000 per extension to enable the Agency recover the cost of diesel and other logistics during the period of extension,” he announced.

Continuing, he said: NAMA has been charging as low N11, 000 per flight when a one-way domestic ticket cost only N16, 000. While ticket prices today have gone up astronomically to as high as between N150,000 to N200,000 for a one way economy ticket owing to the prevailing economic circumstances, NAMAS’s navigational charges have remained the same since June 2008.

“Also, NAMA charges N50, 000 for every hour that it has extended services beyond the stipulated hours of service at aerodromes that do not have 24 hours service.

“In 2008 a litre of diesel was sold at around N113, today it is well over N1, 400 per litre which represents over 1,000% increase which makes the current charges unsustainable. Same goes with personnel costs and other costs.

“Currently, our unit rate for international flights charge for service provision is about $70; domestic flights are charged N6, 000. While, NAMA recognises the difficult economic environment aviation operates in Nigeria, it is equally a part of the ecosystem. It goes to the same market to procure equipment and other services like trainings.”

Based on the foregoing, Ahmed contended that “if NAMA is to survive and continue to guarantee safety and efficiency in the airspace, it must breathe!”

In 2023, he said the agency had an expenditure of about N21 billion in personnel costs alone, spent over N12 billion in capital costs and over N10 billion in overhead costs.

He explained that all the expenditure were/are to be funded from fees and charges, not federal government’s budgetary allocation.
The managing director also announced that NAMA had invested heavily in training programmes to equip its personnel with the latest skills and knowledge stressing that its “training initiatives have ensured that our workforce remains proficient and adaptable to technological advancements.

He also said the agency had strengthened its relationship with airlines, regulatory bodies, and international partners adding that “collaborative efforts have led to improved air traffic management and better service delivery.”

He said by embracing change, fostering collaboration, and maintaining commitment to excellence, “we can not only survive but thrive amidst this challenging macro-economic environment.”