2019 Budget: Reps Query Aviation Agencies’ Revenue Collection Modalities

In what looked like outright suspicion that the country’s Aviation agencies were insincere in their account of revenues accruing from Internally Generated Revenues (IGR), the House of Representatives Committee on Aviation, on Wednesday, directed the agencies to come forward and explain modalities for revenue collection.

Nkiruka Onyejiocha, Chairman of the Committee, who gave the directive during the 2019 budget defence exercise by the agencies, declared that frequency of requests to borrow by the agencies has become worrisome despite huge revenues accruable to the sector.


The Chairman, who was particularly concerned about the revenues collected by the Federal Airports Authority of Nigeria (FAAN), asked the agency to present the revues collection modalities of the agency to the Committee by Monday.

FAAN had brought before the committee a proposal of N101.6 billion targeting 25% quarterly remittances, while its counterpart, the Nigeria College of Aviation Technology (NCAT), proposed a total of N4.7 billion in the 2019 budget.

Saleh Dunoma, Managing Director of FAAN said: “The Authority is proposing for the year 2019 a Budget of N101,673,038.972 as against N88,805,462,776 for 2018 which gives a 14.5% increase. This is in anticipation of an increase in passenger traffic as well as a boost in the non-aeronautical revenue base of the Authority as already highlighted in the 2018 Budget performance.

“The Total proposed Revenue for the year 2019 of N101,673,038,972 is made up of N60,333,711,139 from the Aeronautical Revenue Sources N26,028.613.858 from the non-aeronautical sources and N16,916,422,205 as anticipated debts to be recovered.

“The Authority is also proposing a Total Recurrent Expenditure for the year 2019 of N58, 436,502,297 with N34, 717,465,542 as Personnel Costs and other related costs, N23, 719,036,755 as overhead costs.

“A Proposal of N17, 818,276,933 for Capital Budget against N16, 778,007,445 approved for the year 2018.

Donuma added:  “The 6.2% increase in capital expenditure between 2018 and 2019 is large as a result of “Planned improvement in Infrastructural development across the airports and efforts in certification with Port Harcourt and Kano International Airports in view for the year 2019”.

Speaking further he said, “Provisional estimate of N25,418,259,743 which is 25% of the total revenue is set aside against which the authority will be making quarterly interim remittances pending the audit of financial statements in determining the final operating surplus as stipulated by the Fiscal Responsibility Act.”

The MD prayed the committee to pass the budget and also assist them in recovering most debts owed them by various aviation organizations.

“We have made a presentation of our performance on the 2018 budget and of course our proposals for the 2019 appropriation budget which we submitted to the House Committee on Aviation for their consideration and approval. This has been accepted and we are waiting for further direction.”

“The entire revenue projection is about 101 billion. This is based on the legislative increase in the aircraft movement and cost contingency.

“We pray that the committee will approve the budget and secondly, we want them to assist us to collect our debts from other organisations.”

Similarly, the Nigerian College of Aviation Technology (NCAT), Zaria, Kaduna State also projected its 2019 budget to be a total sum of N4, 782,622,131.71 comprising Personnel and Overhead Costs.

Capt. Mohammed Abdulsalami, Rector and Chief Executive of the College, while making the presentation at the House of Representatives Committee on Aviation projected a total sum of N3, 003,248,585.51 as its IGR.

He said that the figure represented a 10.5% reduction in budgetary provision when compared to the sum of N3, 355,648,585.51 appropriated in 2018.

He said: “On 2018, the Internally Generated Revenue (IGR) budget, the National Assembly appropriated the sum of N3, 355,648,585.51. The college generated the sum of N2, 368462,845.16 representing a 70.58% performance. The total overhead expenditure for the period under revenue is N2, 290,814,558.70 representing a 68.27% performance on appropriation and a 96.72% performance on revenue generated.

“In the year 2019, the college is proposing an FGN budget of N4,782,622,131.71 comprising N1,780,047,527.00 for Personnel Cost, N243,400,000.00, for Overhead Cost and N2,759,174,064.71 for Capital Expenditure. This represents a 24% reduction in the budgetary envelope when compared to the sum of N6,277,948,440.00 appropriated in 2018.

“In the year 2019, the College is proposing an IGR of N3, 003,248,585.51comprising N2, 853,248,585.51 for Overhead Cost and N150, 000,000.00 for replacement of insured assets. This represents a 10.5% reduction in budgetary provision when compared to the sum of N3, 355,648,585.51 appropriated in 2018.”

In her remarks, Hon. Nkiru Onyejiocha, Chairman of the Committee, charged the agencies and parastatals in the Aviation sector to ensure that all monetary reports are harmonized and presented to the Committee for proper documentation.

“We want to see everything in black and white. This 8th assembly is winding up and we will want to give a handover note to others. We are trying to live up to the next level agenda of this government,” she said.





INDEPENDENT