Eighteen years after its last review, Nigeria’s navigational charges have become increasingly misaligned with economic realities, technological demands, and global aviation standards, prompting renewed calls from industry stakeholders for an urgent overhaul of the Nigerian Airspace Management Agency’s (NAMA) revenue framework.
At the centre of the debate is NAMA’s statutory responsibility to provide safe, reliable air navigation services across Nigeria’s airspace, services that rely on sophisticated equipment, skilled personnel, continuous training, and round-the-clock operational readiness, but which are funded largely through charges that have remained unchanged since 2008.
Stakeholders argue that the current tariff regime can no longer sustain the agency, particularly in an era of rising energy costs, currency depreciation, inflation, and rapid technological evolution in air navigation systems.
As a non-profit service provider, NAMA operates strictly on a cost-recovery basis in line with international best practices. This framework is clearly outlined in ICAO Doc 9082 and reinforced in ICAO’s Policies on Charges for Air Navigation Services, which allow air navigation service providers to recover the full cost of service delivery, including capital investment, depreciation, maintenance, personnel, training, and administrative expenses.
ICAO further stipulates that charges should be equitable, transparent, and reflective of the actual cost of providing en-route, approach, and aerodrome navigation services, costs that stakeholders say have risen exponentially since the last review.
Despite these global guidelines, NAMA has continued to operate with tariffs set nearly two decades ago, even as it deploys modern surveillance systems, communication equipment, and satellite-based navigation infrastructure required to meet contemporary safety standards.
Compounding the agency’s financial strain is the Federal Government’s policy of deducting 50 per cent of internally generated revenue at source, a measure industry experts describe as counterproductive and potentially destabilising for a safety-critical agency.
According to aviation professionals, navigational aids form the backbone of safe and secure airspace, and delays in replacing or upgrading them pose long-term operational and safety risks. Several stakeholders note that successive NAMA managements have struggled to sustain operations and infrastructure upgrades with shrinking disposable revenue.
Engr. Selzing Miri, President of the National Association of Air Traffic Engineers, described the situation as unsustainable, warning that without adequate funding, NAMA may struggle to maintain the safety levels currently enjoyed in Nigeria’s aviation sector.
“These facilities are critical to flight safety. They must be purchased, upgraded, maintained, and backed up. Without sufficient funding, safety will inevitably be compromised,” he said.
Industry attention has also focused on En-route Navigational Charges (ENC) and Terminal Navigational Charges (TNC), which constitute the bulk of NAMA’s revenue. Both charges have remained static since 2008, despite massive increases in operational costs.
Under the proposed review, the minimum en-route charge would rise from ₦2,000 to ₦18,000 per flight, while domestic terminal navigation charges would increase from ₦6,000 to ₦54,000. In addition, extension of hours of service, often requiring diesel-powered generators, overtime staffing, and contingency logistics, is proposed to increase from ₦50,000 to ₦450,000 per hour.
Stakeholders argue that these adjustments are not excessive when viewed against current operating costs and the reality that airlines themselves have repeatedly adjusted ticket prices upward in response to economic pressures. Industry data shows that domestic airfares have increased more than tenfold in recent years, yet airlines continue to operate viably.
For the President of the Air Transport Services Senior Staff Association of Nigeria, Comrade John Ogbe, the logic is straightforward.
“The cost of providing navigation services 15 or 18 years ago is not the same today. If airlines can adjust their prices to survive, NAMA should be allowed to do the same to ensure safety,” he said.
Similarly, Dr. Ibrahim Audu, President of the Aeronautical Information Management Association of Nigeria, noted that modern air navigation services cannot be delivered using outdated pricing models.
“NAMA cannot render today’s technologically advanced services at 18-year-old rates. Equipment costs, diesel prices, and technical requirements have all changed,” he said, calling on the Federal Government to intervene and support a realistic review.
With personnel costs exceeding ₦21 billion, capital expenditure above ₦12 billion, and overheads of more than ₦10 billion in 2023 alone, without direct federal budgetary allocation, stakeholders insist that an upward review of navigational charges is no longer optional but necessary.
Many in the industry believe that a fair, ICAO-compliant adjustment, implemented with transparency and stakeholder engagement, would strengthen NAMA’s capacity, improve air traffic management, and ultimately enhance safety and service delivery across Nigeria’s aviation ecosystem.
