President Bola Tinubu has announced a major reduction in deductions from their Internally Generated Revenue (IGR). The percentage deducted has been slashed from 50% to 20%, marking a significant shift in government policy. This decision is intended to grant these agencies greater financial freedom and improve their ability to manage their operations efficiently.
The change comes after months of discontent from various unions within the aviation sector. Union leaders had been threatening to initiate nationwide protests over the previous 50% IGR deduction policy. They argued that this heavy cut hampered their agencies’ operational capabilities and financial stability. The unions believed the deduction put undue strain on their ability to function properly, particularly as they work to maintain safety and efficiency within the aviation industry.
In response to the policy change, union leaders are now in talks with the Managing Director of the Federal Airports Authority of Nigeria (FAAN). The discussions are focused on the implications of the new directive and how it will affect the aviation sector moving forward.
The aviation unions that had voiced concerns and threatened strikes include employees of the Nigerian Civil Aviation Authority (NCAA), Federal Airports Authority of Nigeria (FAAN), Nigerian Airspace Management Agency (NAMA), Nigerian Meteorological Agency (NiMet), Nigerian College of Aviation Technology (NCAT), and the National Safety Investigation Bureau (NSIB). They were united in their call for a reduction in the deductions to ensure better financial autonomy and operational effectiveness for their agencies.
A joint statement issued by several union leaders including Ocheme Aba, General Secretary of NUATE, and Abdul Rasaq Saidu, Secretary General of ANAP, detailed their plans for industrial action had the government not taken steps to address their concerns. However, with this new policy in place, the situation seems to be calming, and the unions are reevaluating their next steps.
