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Aviation agencies groan under inadequate funding, mismanagement

By BusinessNews Staff on August 3, 2014

The Nigerian Civil Aviation Authority (NCAA), the Federal Airports Authority of Nigeria (FAAN), the Nigeria Airspace Management Agency (NAMA) and the Nigeria Meteorological Agency (NIMET) are facing financial challenges that may affect their operations.

Government is considering that with a new Minister in place it may provide funds but on the condition that it may sack the agency heads and other top management officials who are alleged to be mismanaging the funds.

THISDAY learnt that NCAA has been faced with finances problems since the past three years when its deposits were depleted that it found it difficult to pay salaries and allowances of workers.

Although the management of the regulatory body always denied that the organisation is financially in the woods but it has failed to abide by its training programmes due to lack of funds and even those who go for training, using their personal funds are not reimbursed when they return.

THISDAY learnt that such allowances owed workers have piled up since the past three years and this is discouraging further training programmes, as the core activities of the organisation is training and updating skills to ensure effective safety regulation of air operations in the country.

In FAAN, besides the huge debts owed contractors for the remodelling of airport facilities, amounting to over N153 billion, the revenue target of the agency is not being met because the non-aeronautical revenue that was hoped to accrue from the remodelled airports is yet to be met.

The targeted revenue is not being realised because the facilities have not been completed and since 2011 the rehabilitation started, most shops at different airports were closed and other offering from FAAN were stopped until the rehabilitation was completed.

THISDAY learnt that the activities of NIMET are being hampered by inadequate funding. It cannot acquire new equipment or embark on training, so the agency is innovating by partnering with organisations outside the aviation sector in order to boost its revenue.

While NAMA is improving revenue from its over flyer charges and foreign airlines operating into the country, it does not have funds to complete some of its projects that would enhance airspace safety and technology. In many airports in the country there is no instrument landing system (ILS) and in many of the airports there is no airfield lighting, so aircraft cannot land there in the night.

THISDAY learnt that part of the reason the agencies are in financial straits is due to mismanagement of available funds; that there is no transparent accounting of the funds government provides to these agencies for capital projects.

NCAA also laments that the domestic carriers owe it the 5 per cent charges to the tune of millions of Naira and that the debts affect NIMET because it shares a certain percentage from the 5 per cent deductions.

Informed source said government is extremely reluctant to provide funds again to these agencies, but now that it has become obvious that government must inject funds to ensure they continue to provide essential services, many of the management heads and others managing their financial system may be sacked.

“Government is convinced that the funds available to these agencies are grossly mismanaged. Few years ago NCAA used to have excess fund deposits that were not touched from year to year, but since 2010 there was discernible lack of funds. That was when we felt the first delay in salary and allowances. Whatever government wishes to do to better the situation, let it do so urgently to put these agencies back on track,” NCAA source told THISDAY.

[This Day]

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