Travel/Tourism
IGR Deduction: FG Begs Aviation Unions for Dialogue After Protest Threat
By Adedapo Adesanya
A group of Nigeria’s aviation unions has threatened to down tools and embark on a nationwide protest on Wednesday, September 18, 2024, over continuous deduction of remittances from the Internally Generated Revenues (IGR) of aviation agencies by the federal government.
The protest, the unions said, will take place at all airports nationwide if the federal government fails to exempt these agencies from the deductions.
The affected agencies are the Nigerian Civil Aviation Authority (NCAA), Federal Airports Authority of Nigeria (FAAN), Nigerian Meteorological Agency (NiMet), Nigerian College of Aviation Technology (NCAT), and Nigerian Safety Investigation Bureau (NSIB).
The threat sparked a quick response from the Minister of Aviation and Aerospace Development, Mr Festus Keyamo, who appealed to the unions to reconsider their planned protest on September 18, 2024, and allow for dialogue.
Speaking yesterday, he noted that the government believes through constructive engagement, a mutually beneficial solution can be reached, ensuring the safety and sustainability of the aviation sector.
According to a statement, the Minister acknowledged the concerns raised by the unions within the aviation sector regarding the deduction of 50 per cent of Internally Generated Revenue (IGR) at source by the government.
He assured all stakeholders that President Bola Ahmed Tinubu was looking into the concerns raised.
The unions explained that these agencies are cost-recovery organizations and not profit-making entities and as such, they cannot survive on half of their incomes.
The unions warned that critical safety activities within these agencies are already being compromised due to the financial strain imposed by the deductions, noting that this has emasculated their operations and may degenerate further if the deductions are not halted.
They further cautioned that they would not be held responsible if the aviation industry becomes dysfunctional due to these financial constraints.
The statement read in part: “All efforts on our part have failed to impress upon the federal government that all the agencies are cost-recovery, and not profit-making, organisations.
“As such, they cannot survive on half of their incomes under any model of administration or any other guise whatsoever. The ultimatum given to the Minister of Aviation has expired since the end of August 2024.
“Information available to us indicates that some important safety-critical activities of the agencies are grinding to a halt under the yoke of the deductions.
“It has therefore become incumbent upon us as trade unions and workers in aviation to inform the public and the government that we shall bear no responsibility if the industry becomes dysfunctional as a result of financial incapacity due to the deductions at source.
“All State Councils, Women Commissions/Committees, Youth Councils, and branches of our unions nationwide are to fully mobilise for, and ensure full compliance with, the success of the peaceful protests.”
The joint statement which was signed by the secretaries of the unions stated that they had given the Minister of Aviation an ultimatum, which had expired, and are now warning that they will not be held responsible if the industry becomes dysfunctional as a result of financial incapacity.
The unions have called on all state councils, women’s commissions, youth councils, and branches nationwide to mobilize and ensure the success of the protest while further actions will be decided and communicated if the protest does not achieve the desired result.
According to Mr Keyamo, “We understand the strain this has placed on the sector’s ability to address critical safety and operational needs, and we take these concerns very seriously.
“We wish to assure the unions and all stakeholders that, the Honourable Minister of Aviation and His Excellency, Mr. President, are fully aware of the situation and are working diligently to find a resolution.
“The government is committed to ensuring that the aviation sector continues to operate efficiently and safely.”
He further said that in response to the concerns, the Ministry has scheduled a meeting with the leadership of the unions on September 17, 2024.
By Adedapo Adesanya
The Federal Competition and Consumer Protection Commission (FCCPC) has commenced an investigation into pricing templates behind high ticket rates charge by some airlines on some domestic routes.
A statement issued by the Director of Corporate Affairs of the commission, Mr Ondaje Ijagwu, in Abuja said the investigation was to establish possible violations of the provisions of the law.
Mr Ijagwu said that concerns had been expressed widely in the past few days over what appeared to be coordinated manipulation or exploitation in the pricing of airline tickets by some airlines on certain routes, adding that the routes where concerns had been raised included the South-East and South-South, as the festive season began.
According to him, the ongoing investigation targets operators on the identified routes.
He said the commission would apply appropriate enforcement measures where evidence showed any violation of the Federal Competition and Consumer Protection Act (FCCPA).
Mr Ijagwu explained that Air Peace, had instituted a court action seeking to restrain the agency from examining its pricing mechanisms, following the commencement of an investigation into its pricing model after widespread complaints from members of the public.
He said the ongoing inquiry was without prejudice to the case instituted against the Commission by Air Peace.
The director quoted the vice chairman of FCCPC, Mr Tunji Bello, as saying “the commission would not hesitate to act where evidence showed that consumers welfare or market competitiveness were being undermined.
”For the avoidance of doubt, we are not a price control board but the FCCP Act 2018 empowers us to check the exploitation of consumers.
”When we receive petitions or where we find cogent evidence, we will not stand by and watch Nigerian consumers being exploited under any guise.
”Given the arbitrary spike in airfares, the Commission is extending its review of pricing patterns, the basis for the increases reported by consumers, and any practices that could undermine fair competition.
”Where evidence confirms a breach of the Act, FCCPC will apply appropriate enforcement measures,” Mr Bello said, promising that the organisation will continue to provide updates on the ongoing investigations in the aviation industry.
By Aduragbemi Omiyale
A travel card designed for tourists, business visitors, Diaspora returnees has been launched by Verve in partnership with Providus Bank.
Known as the ProvidusVerve Travel Card, the Naira-based travel card will allow inbound travellers to enjoy a smooth, secure, and convenient payment experience throughout their stay in Nigeria. It was powered by Verve’s secure.
Created to support the surge of tourists, expatriates, business visitors, conference delegates, and returning diaspora expected during the festive Detty December season, the ProvidusVerve Travel Card enables seamless payments for transportation, hotels, dining, shopping, entertainment, and everyday essentials nationwide.
The card also works on select global merchant platforms that accept Verve, including Netflix, Google Play, and other digital services, ensuring travellers enjoy uninterrupted access to familiar services.
The ProvidusVerve Travel Card eliminates the hassle of sourcing naira or converting foreign currency on arrival. It enables instant, secure transactions, reduces reliance on cash, and supports compliance with the cashless policy of the Central Bank of Nigeria (CBN).
It also mitigates the risks associated with carrying physical cash such as loss, theft, or fraud, offering a safe, regulation-aligned option for both online and in-person payments.
“The ProvidusVerve Travel Card is a timely solution for inbound travellers seeking reliability, security, and simplicity while navigating Nigeria.
“Together with Providus Bank, we have created a product that eliminates the friction traditionally associated with accessing local payments.
“Whether for tourism, business, or festive activities, this card ensures a smooth financial experience from the moment visitors land,” the Vice President for Issuing and Acquiring Management for Africa at Verve International, Mr Paul Ohakim, stated.
On his part, the Divisional Head for Product Management and Solution Delivery at Interswitch, Mr Ademola Adeniran, described the partnership as a reflection of “Verve’s commitment to designing products that respond to real user needs.”
“The ProvidusVerve Travel Card supports everyday experiences — from booking rides and hotels to shopping, streaming, and dining. It provides inbound travellers with a secure, compliant, digital-first way to experience Nigeria without financial barriers,” he added.
By Adedapo Adesanya
The Minister of Aviation and Aerospace Development, Mr Festus Keyamo, has disclosed that the federal government may recover and sell the assets of Dana Air to refund passengers and travel agents whose funds remain trapped following the suspension of the airline’s operations.
The Minister disclosed this in Abuja on Tuesday at the Ministry’s fourth quarter stakeholders’ engagement to enhance governance for effective service delivery in aviation.
Speaking at the event themed “leveraging public feedback to drive excellence in aviation services, the Nigeria Civil Aviation Authority (NCAA) will be directed to probe why funds trapped by the airline are yet to be refunded.
He revealed that the authority suspended the operations of the airline as a matter of choice between safety and disaster.
“For Dana, the problem is that it was a choice between safety and disaster. So we didn’t take the commercial thing as priority. The priority was safety, and we all looked at the damning reports that we had met on the table.
“It was a decision of the NCAA to suspend them, but I pushed them to say, look, these are the reports we are seeing on the table about safety record, about lack of standards that put the lives of Nigerians at risk. If they continue flying, I don’t know whether most of us will be here. Many of us would have been victims of one of those flights. God forbid.”
According to him, “I have asked Najomo (NCAA director general) to dig deep to find out how those passengers and agents will be refunded. He has to dig deep on that.
“One solution will also be that if that same individual or those entities are trying to come back to aviation under any guise, whether to go and register a new AOC or use any business within the aviation sector, they have to go and settle their debts first.
“We should look at their assets. There are assets that are still available. Let them sell their assets. Let’s cannibalize their revenue and pay people. Let’s find a way to go after their assets and get money to pay Nigerians who are owed.
“NCAA should do that because they can’t get away with it.”
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