President Bola Tinubu has approved the reduction of deductions in aviation agencies’ internally generated revenue (IGR) from 50 per cent to 20 per cent.
Gbenga Saka, Special Adviser on Digital Media to the Minister of Aviation and Aerospace Development, Festus Keyamo, announced on his X page on Friday.
On Tuesday, aviation union workers called on the Federal government to discontinue the deduction of 50 per cent from the revenues generated by aviation agencies.
The workers had threatened to embark on a one-day strike to protest, adding that agencies are “cost recovery, and not profit making organisations,” hence “cannot survive on half revenue”.
Responding to their agitation, Keyamo, on Friday, said the demands of the aviation workers have been “duly noted” and would be given due consideration.
Following the minister’s statement, Saka said the president has approved a reduction.
“President Bola Ahmed Tinubu has authorized a significant reduction in deductions from the Internally Generated Revenue (IGR) of Aviation Agencies—from 50% down to 20%,” he said.
“This move aligns with the Honourable Minister, Festus Keyamo’s assurance to workers’ unions and other stakeholders that President Tinubu is deeply committed to enhancing the Aviation sector.
“The President aims to thoughtfully address their demands, seeking a balanced, lasting solution that meets both government fiscal needs and the operational requirements of Aviation Agencies.”
On May 30, the Nigerian Airspace Management Agency (NAMA) called for a reversal of the 50 per cent deduction in its revenue.
NAMA said it is currently facing significant financial constraints due to the deduction.
The Managing Director of NAMA, Farouk Umar, had lamented that the 50 per cent revenue deduction was hindering the agency’s ability to maintain and upgrade critical infrastructure.