The Aviation Safety Round Table Initiative (ASRTI) has proposed a major overhaul of Nigeria’s aviation regulatory fee collection system, advocating a flat-rate passenger charge and automated payment framework as a lasting solution to the recurring disputes between the Nigerian Civil Aviation Authority (NCAA) and domestic airlines over regulatory remittances.
In an advisory note titled Integrated Framework for Regulatory Fee Basis and Automated Collection, ASRTI President, Air Commodore Ademola Onitiju (Rtd), said the ongoing disagreement between the NCAA and members of the Airline Operators of Nigeria (AON) exposes fundamental weaknesses in the current five per cent Ticket Sales Charge (TSC) regime.
According to Onitiju, the existing percentage-based model effectively places airlines in the role of unpaid tax collectors, requiring them to collect and remit regulatory charges while bearing associated transaction and processing costs. He argued that the practice creates significant liquidity challenges for carriers already grappling with high operating expenses, including aviation fuel, maintenance obligations and other cash-intensive requirements.
He noted that the commingling of regulatory charges with airline revenues at the point of ticket sales often leads to delays in remittances, accumulation of debt obligations and persistent conflicts between operators and the regulator. He also identified manual reconciliation processes, delayed billing systems and audit disputes as additional weaknesses within the current framework.
Beyond collection challenges, Onitiju questioned the policy foundation of the ad valorem charge, arguing that it conflicts with the International Civil Aviation Organisation’s principle of cost-relatedness. He explained that passengers travelling on the same flight consume identical safety oversight and air navigation services regardless of ticket class, making varying regulatory charges based on fare levels difficult to justify.
The ASRTI President further observed that airlines have increasingly adjusted their pricing structures by maintaining lower base fares while introducing fuel surcharges, currency adjustment fees and ancillary service charges that are often excluded from the TSC calculation. According to him, this practice narrows the regulator’s revenue base and fuels disagreements over the interpretation of applicable charges.
To address the problem, ASRTI proposed replacing the current five per cent levy with a fixed passenger charge denominated in naira for domestic travel and in foreign currency equivalents for international operations. The association said a flat-rate structure would align with international best practices, eliminate pricing distortions and create a more transparent system for both airlines and regulators.
The group also recommended the introduction of an automated split-payment system that would deduct regulatory charges at the point of ticket purchase and remit them directly into the Federal Government’s Treasury Single Account through the Central Bank of Nigeria. Under the arrangement, airlines would receive only their operational revenue while regulatory funds would be transferred automatically to the appropriate government account.
Onitiju explained that the proposed system would apply across all ticket distribution channels, including airline websites, mobile platforms, travel agencies and physical ticketing outlets, thereby eliminating collection leakages and reducing administrative burdens.
He maintained that the reforms would provide the NCAA with a more stable and predictable revenue stream tied directly to passenger traffic rather than fluctuating ticket prices. For airlines, he said, the framework would improve cash flow management, reduce compliance risks and eliminate the operational strain associated with collecting and remitting regulatory charges.
According to ASRTI, the proposed model would replace the current cycle of financial disputes and regulatory tension with a transparent, technology-driven system capable of supporting sustainable growth, stronger safety oversight and improved efficiency across Nigeria’s aviation sector.
The association disclosed that its detailed recommendations have been forwarded to relevant government authorities for consideration as discussions on aviation sector reforms continue.
