Over the years the Nigerian Airspace Management Agency (NAMA) has depended on the revenues earned from airlines that fly over Nigeria’s airspace to other destinations as well as foreign airlines that operate into Nigeria.
THISDAY learnt that in recent times, domestic carriers have been paying their debts.
In the past, most of them used to owe the aviation agencies, including NAMA.
Industry insiders explained that because domestic airlines have undulating history, many of them have short life span and have become unreliable source of revenue that can sustain the operations of the airspace manager, NAMA.
The federal government some years ago had directed the agency to become self-sustaining and at the same time pay 25 per cent of their annual income to the federal government as revenue generating agency, known as consolidated revenue fund.
This presented fiscal dilemma to NAMA because at certain period after this policy was introduced, NAMA had poor communication system in the upper airspace and could not provide the needed service to over fliers. These are aircraft that are travelling to other destinations by flying across Nigeria’s airspace. In flying across Nigeria’s airspace, they expect to know the en-route weather conditions, their flight path and other relevant information that would guide them safely.
These services are paid for and that is how NAMA generates most of its revenue, as flight traffic to the Americas, Southern Africa and other destinations cross Nigeria’s airspace.
To ensure effective collection of revenues from over fliers, NAMA engaged the services of the International Air Transport Association (IATA), which serves as medium between the airlines and the agency.
But during the coronavirus pandemic lockdown and thereafter, NAMA literally became bankrupt. Its revenue fell to 10 per cent of its annual earnings and it found it difficult to pay workers salary. Informed source told THISDAY that the agency borrowed for many months to pay salaries.
Hopefully the revenue has risen to 46 per cent of pre-covid-19 earnings, according to the Managing Director of NAMA, Captain Fola Akikuotu and the agency hoped that revenue earning would eventually bounce back to 2019 status and higher over time.
Despite this set back, NAMA said it is elated because IATA recently commended the agency for its transparent billing system, which its clients, the airlines are satisfied with.
IATA said compared to other countries, Nigeria’s NAMA has almost zero errors in the bills the agency send to them. NAMA told THISDAY that in the whole of AFI (Africa and India) Region, Nigeria remains the best as it has zero errors in its bills.
The world body said airlines promptly pay NAMA bills whenever they are presented to them because they are usually clear and transparent; unlike that of many similar agencies in other parts of the world whose bills are allegedly obscure, forcing the airlines to contest and sometimes refuse to pay for the bills
So last week the NAMA management decided to reward the General Manager, Commercials, Mrs. Joy Umeh, who is behind the aggressive drive for revenue for the agency.
In rewarding Umeh, Akinkuotu also commended all the staff of the commercial department and expressed appreciation over the way they coordinate and earn revenues for the agency.
“IATA has commended NAMA that it keeps accurate figures. We met IATA in Geneva in 2020 and they let us know that the airlines are happy with our bills. The COVID-19 had adverse effect on our revenue, just like others in the aviation industry. In fact, in April 2020, we only made 10 per cent of our usual income. But Mrs. Umeh told us not to worry and since then the revenue kept going up.
“Today it is 46 per cent. I recall that whenever I am down because of the financial situation in NAMA, Mrs. Umeh will come and say, Oga, this is much we have made. That gives me hope. It is not only Mrs. Umeh; I know it is the whole commercial department that did it, but we must give her credit for her coordination.
“During Covid-19 we faced difficult times. Our revenue is dependent on debt recovery so without service there won’t be payment. It was really tough but the commercial department gave us hope. Madam (Mrs. Umeh), I am proud of you. Yes, nothing gratifies more than recognition, but in a competition, somebody must win, but that does not mean that those who did not win performed badly.
“As we celebrate Mrs. Umeh for her doggedness, steadfastness, not waiting for commendation, we hope also that others will have their own turn; not only from the commercial department but also in other areas in the agency. I have spent over four years in this agency and I know that you people work very hard. We have to institutionalise this award to encourage the staff,” the NAMA Managing Director said.
In response, the elated Umeh thanked Akinkuotu and the management of NAMA, saying that the award was not only for her but also for all the staff of the Commercial Department of the agency. She also said that the award would ginger her and the staff of the department further to do more exploits for the agency. With high expectation, the Managing Director, Captain Akinkuotu said he was optimistic that the revenue of the agency would rebound.
