The House of Representatives Committee on Aviation has demanded the stoppage of the remittance of 25 per cent revenues generated by aviation agencies to the Federal Government.
According to the Chairman of the committee, Nnolim Nnaji, aviation agencies should be allowed to retain 100 per cent of internally generated revenues for infrastructure development, training and re-training of their staff.
Nnaji, stated during a debate on the 2020 Budget Appropriation Bill transmitted to the National Assembly by President Mohammadu Buhari.
According to him, aviation agencies need the IGRs to provide safety critical personnel and manpower development and should not be included in the Ministry, Department and Agencies (MDA) as most of the revenues generated these past years are debt recovery,not profits from businesses. Nnaji suggested 25 per cent of IGR from aviation agencies be kept in a consolidated fund for a 10-year-rolling plan for development and maintenance of aviation infrastructures. According to him, such policy would trigger robust commercial activities in and around airports and the government would reap through Value Added Tax (VAT) and other tariffs.
“If our aviation infrastructure is well funded and up to standards, investors will feel comfortable to come into the country and invest. Our international airports create the first impression of Nigeria to the visitors,” said Nnaji.
“The feelings they get from the airports will affect their confidence level in our economy and that is why we must strive to give them maximum attention when it comes to funding.
“Rather than take from the sector, the government should invest more in aviation because the industry is still at a developmental stage. If we invest in the sector, we will adequately harness the potential that are abound in the industry,” Nnaji said.