The Managing Director of the Nigerian Airspace Management Agency, NAMA, Engr Farouk Umar has disclosed that the agency has invested heavily in training programs to equip its personnel with the latest skills and knowledge.
Farouk said NAMA training initiatives have ensured that its workforce remains proficient and adaptable to technological advancements.
In his keynote address at the recently held 28th conference of the League of Airport and Aviation Correspondents, LAAC, with the theme: Aviation Survivability amidst a Challenging Macro Economic Challenges, Farouk noted that it has strengthened relationships with airlines, regulatory bodies, and international partners. Collaborative efforts have led to improved air traffic management and better service delivery.
MAMA boss stated that by embracing change, fostering collaboration, and maintaining its commitment to excellence, she can not only survive but thrive amidst this challenging macro-economic environment.
He maintained that to survive in this challenging environment, the agency must prioritize operational efficiency and cost management which involves streamlining its processes, optimizing resource allocation, and embracing technologies that enhance efficiency.
Farouk added that the aviation industry requires collaborative approach to operational efficiency and cost management.
He said NAMA is committed to continuously improving its air traffic management systems to ensure safe, efficient, and cost-effective operations.
He emphasized that
embracing Innovation and Technology
Innovative and technological approach is key to improving the survivability of the industry.
According to him, the digital transformation of aviation is not just a trend but a necessity.
He noted that implementing advanced technologies, leveraging artificial intelligence for predictive maintenance, and enhancing cybersecurity measures are critical steps, adding that by embracing these technologies, the agency can improve safety, reduce delays, and enhance the overall economic performance of Nigeria’s aviation.
Farouk said: “At NAMA, we are implementing advanced surveillance systems, communication and navigation systems that will enhance cost effective flight procedures.
Strengthening Infrastructure
Robust and modern infrastructure is essential for the growth of our aviation sector. Our airports need more modern infrastructure to accommodate the present and future demands of airport terminals that support more efficient flight operations. NAMA is dedicated to upgrading our airspace infrastructure to accommodate future demands. This includes modernizing navigational aids, enhancing radar coverage, and implementing satellite-based systems. These upgrades will improve safety, efficiency, and capacity, positioning Nigeria as a key player in global aviation”.
NAMA boss stated that the agency must foster partnerships amongst airlines, air navigation service providers, airports, regulatory bodies, and other stakeholders.
Farouk explained that the industry requires a very efficient pricing of products and services which is critical lever for enhancing affordability, driving competition, supporting infrastructural development, promoting sustainability, and improving operational efficiency.
He disclosed that the largest percentage of NAMA’s revenue comes from en-route navigation charges (domestic and international flights) and terminal navigation charges (domestic and international flights) while international flights pay in US dollar, domestic flights pay in the Nigerian currency.
He explained further that as a service provider and in accordance with ICAO best practices, NAMA does not make profit as ICAO Doc 9082 recommends cost recovery for service provision to cater for the cost of equipment, personnel, trainings and other ancillary costs.
Farouk disclosed further that for 2023, NAMA has an expenditure of about N21 billion in personnel costs alone, spent over N12 billion in capital costs and over N10 billion in overhead costs, funded from fees and charges with (no FGN budgetary allocation).
He pointed out that NAMA has been charging as low 11,000 Naira per flight when a one-way domestic ticket cost only 16,000 Naira, while ticket prices today have gone up astronomically to as high as between 150,000 to 200,000 Naira for a one way economy ticket owing to the prevailing economic circumstances, while Nama’s navigational charges have remained the same since June 2008.
He said: “Also, NAMA charges 50,000 Naira for every hour that it has extend services beyond the stipulated hours of service at aerodromes that do not have 24 hours service. In 2008 a litre of diesel was sold at around 113 Naira, today it is well over 1,400 Naira per litre which represents over 1,000% increase which makes the current charges unsustainable. Same goes with personnel costs and other costs.
Currently, our unit rate for international flights charge for service provision is about $70, domestic flights are charged 6,000 Naira. While, NAMA recognizes the difficult economic environment aviation operates in Nigeria, it is equally a part of the ecosystem. It goes to the same market to procure equipment and other services like trainings. If NAMA is to survive and continue to guarantee safety and efficiency in the airspace, it must breathe “.
He continued that: “It is in the light of this, and in the spirit of this conference’s theme of survivability that NAMA announces the review of its fees and charges. Even though most costs in the economy have increased by more than 1,000%, NAMA has proposed to increase its fees and charges by 800%.
The new unit rate/minimum charge for en-route is 18,000 Naira from 2,000 Naira per flight while the new unit rate/minimum charge for terminal navigation charge(TCN domestic) is 54,000 from 6,000 per flight with effect from the 1st of September, 2024.
Also, the extension of hours of service is also to be reviewed from 50,000 to 450,000 Naira per extension to enable the Agency recover the cost of diesel and other logistics during the period of extension”.
In his opening remarks, the Chairman of LAAC, Comrade Suleiman Idris, advocated that the first step towards the recovery process is for the Federal Government to reconsider its recent decision that 50% of the internally generated revenue of some of the Agencies should be remitted to the government.
Mr Suleiman said this will go a long way to reduce the already unbearable burden that the industry is facing during this challenging time.
He noted that the theme of this year’s conference, ‘Aviation Survivability amidst a challenging micro- economic environment was inspired by the challenging state of the nation’s economy, which has amplified the already existing constraints to growth and development of the country’s aviation sector in the form of poor access to forex, weakening currency, high fuel costs, ballooning maintenance costs, decaying airport infrastructure, regulatory constraints, growing manpower demand, technology upgrade, passenger comfort, among other issues that require urgent attention of industry stakeholders.
LAAC Chairman noted that no stakeholder is exempted from the effect of the industry’s current challenges.
He said: “This is one of the major reasons that we are gathered here today to brainstorm and exchange ideas on how to navigate the multifaceted challenges stunting the growth and development of our industry under the prevailing macro-economic environment.
Suleiman observed that although no segment of Nigeria’s economy operates in isolation, but aviation remains the major gateway to development of any country’s economy.
Suleiman stated that : “We are therefore hopeful that answers to the many questions surrounding the theme of this conference will emerge in the course of today’s deliberations.
As stakeholders in Nigeria’s aviation industry, LAAC’s topmost priority is that every facet of Nigeria’s aviation industry improves in terms of performance.
