The House of Representatives has condemned the over N13 billion debts owed the Federal Airports Authority of Nigeria (FAAN) by some domestic carriers that failed to remit passenger service charge (PSC) to the agency.
PSC is N1000 added to the tickets, which is the cost of services rendered to passengers by the agency for the use of the airports.
The charge has been increased to N2000 from August 1, 2020.
This huge debt was tabled to the House Committee on Aviation, which frowned at the deliberate withholding of levies, thus denying the agency the resources to invest in further development of the airports.
The House reacted in response to a passionate appeal made by the Managing Director of FAAN, Captain Rabiu Yadudu during an interactive session with the committee at the National Assembly yesterday.
The Committee chaired by Hon. Nnolim Nnaji representing Nkanu East/West Federal Constituency of Enugu Sate had summoned him to explain the rationale behind the 100 percent increase of PSC announced by FAAN management in preparations for the lifting of domestic flights across the six geopolitical zones of the country.
The committee though convinced that the increase in PSC was inevitable based on the challenges posed by the COVID-19 pandemic on the industry, was however alarmed to learn that one of the indigenous airlines was yet to remit to FAAN the sum of over N13billion collected on behalf the authority.
The Committee in a unanimous resolution resolved to invite the airlines to come and defend the allegation even as it demanded that the management of FAAN provided it with the details of the debt profile of the affected airlines latest by Tuesday July 7,2020.
The Chairman of the Committee, Hon. Nnaji who described the attitude of some indigenous airlines as regrettable and assured FAAN that his Committee would look into the matter with a view to resolving it so that the authority could carry out its statutory duties of providing world class services to air travellers unhindered.
He further remarked that it amounted to breach of trust by some airlines if they could collect charges on behalf of the agency and failed to remit the money appropriately, noting that such practice must not be condoned.
