The Joint Action Committee of the Nigeria Civil Aviation Authority (NCAA) has called for the commercialisation or privatisation of the Nigerian Airspace Management Agency (NAMA) to unlock access to private equity, private financing, international bonds, and capital markets that would provide the substantial funding required to rapidly deploy next-generation technologies such as satellite-based Automatic Dependent Surveillance Broadcast (ADS-B) systems and modern backup infrastructure.
According to the unions, privatising NAMA would position the agency to become a more self-sustaining entity capable of accessing capital markets, issuing bonds, and attracting private investment for long-term projects.
They argued that currently, NAMA depends heavily on government budgets and statutory sources of funding, a model they said is often constrained by funding limitations.
“National budget debates, shifting political priorities, and bureaucratic delays can delay critical safety upgrades and infrastructure modernisation. Privatisation would free the Agency from exclusive reliance on annual budget cycles for major capital projects, the agency would be able to make more timely, operationally driven decisions that prioritise efficiency and safety. “, they said in a statement jointly signed by the Air Transport Services Senior Association of Nigeria (ATSSSAN) Branch Secretary, Salami J. Adeniyi; Association of Nigeria Aviation Professionals (ANAP) Branch Secretary, Omaga Joshua; National Union of Air Transport Employees (NUATE) Branch Secretary, Celestine N. Chukwu; and the National Association of Aircraft Pilots and Engineers (NAAPE) Branch Secretary at NCAA.
The unions noted further that this model has proven highly successful globally, adding that leading air navigation service providers (ANSPs) such as Nav Canada, NATS Holdings (UK), and Airways New Zealand operate effectively on a user-pays system.
These organisations demonstrate how aligning costs with revenues drives financial stability, operational excellence, and continuous technological advancement.
“According to the 2024 Government-Owned Enterprises budget proposal, NAMAs internally generated revenue is dominated by four major streams: en-route charges, overflight charges, the 5% Ticket Sales Charge (TSC) statutory share, and non-navigational charges. These categories account for the vast majority of the agencys annual revenue.
“Beyond these primary sources, NAMA generates additional income from various streams, including charter flight charges, Air Traffic Services (ATS) at private and state-owned airports, Aeronautical Telecommunication Services charges, calibration fees, obstacle evaluation fees, aeronautical information sales, cartographic surveys, aerial operations charges, and special Hajj/Pilgrimage operation charges.
“However, concerns remain about transparency. Greater public disclosure of revenues generated from airspace violation fines (penalties for breaches of aviation regulations) and Extension of Service Hours Charges for air navigation services provided beyond standard aerodrome operating hours would enhance public confidence in the agency’s financial reporting. Instead, the agency is pushing for a significant increase of between 23% and 40% in the TSC through a proposed bill before the National Assembly.
“We believe aviation safety thrives on clear institutional boundaries. Under a commercialised or privatised framework, NAMA would focus exclusively on the efficient and safe management of airspace, while the NCAA remains an independent, government-backed regulator responsible for strict safety audits and enforcement in accordance with the Civil Aviation Act and ICAO Standards and Recommended Practices (SARPs). This separation would eliminate conflicts of interest and ensure that commercial considerations never compromise passenger safety.”, the statement reads.
Full privatisation or a well-structured Public-Private Partnership (PPP) model represents the logical next step.
They advised that full privatisation or a well-structured Public-Private Partnership (PPP) for the Agency could involve converting it into an independent corporation with private sector participation, clear performance targets, and robust safeguards for national security while preserving effective government regulatory oversight.
“The status quo characterised by obsolete systems, persistent funding shortages, and operational inefficiencies risks leaving Nigeria behind global aviation standards. At a time when efficient airspace management is vital for economic growth and regional competitiveness, commercialising or privatising NAMA offers a proven pathway to safer skies, modern infrastructure, financial sustainability, and operational excellence.
“Nigeria’s airspace deserves world-class management. It is time to harness private sector ingenuity and innovation for the benefit of all Nigerians and the future of the nations aviation industry.”, the unions added.
