FG reduces aviation agencies’ revenue deduction from 50% to 20%

President Bola Tinubu has approved the reduction of deductions in aviation agencies’ internally generated revenue (IGR) from 50 percent to 20 percent.

Gbenga Saka, special adviser on digital media to Festus Keyamo, minister of aviation and aerospace development, announced on his X page on Friday.

On Tuesday, aviation union workers, in a memo, called on the federal government to discontinue the deduction of 50 percent in revenue 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 their demands 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 percent deduction in its revenue.

NAMA said it is currently facing significant financial constraints due to the deduction.

Farouk Umar, managing director of NAMA, said the 50 percent revenue deduction was hindering the agency’s ability to maintain and upgrade critical infrastructure.