FG orders airlines, aviation agencies to agree on TSC repayment plans within one week

The Federal Government has directed airlines and aviation agencies to agree on repayment plans for outstanding Ticket Sales Charges (TSC) within one week. The order came from the Minister of Aviation and Aerospace Development, Festus Keyamo, after an emergency meeting with airlines, unions and agency heads on Thursday.

The meeting followed industrial action by aviation unions on Tuesday, August 11, which disrupted flight operations at Lagos and Abuja airports.

Repayment plans

Keyamo directed the Nigeria Civil Aviation Authority (NCAA) and other aviation agency heads to obtain payment schedules from airlines. He said repayment arrangements should be spread over a reasonable timeframe, taking into account airlines' operating costs and current economic realities.

“The Directors Finance and Accounts in all Aviation Agencies are to meet individual Airlines to agree on realistic repayment plan within one week,” the statement read.

Union rights and sanctions

The minister affirmed workers' right to decide whether to belong to a union. He directed the NCAA to ensure that unions have direct access to workers of all airlines. Unions will distribute membership forms directly to workers so they can independently decide whether to unionise.

Keyamo said any airline that prevents unions from having direct access to its workers will be sanctioned by the NCAA. The stakeholders agreed to reconvene after one month to review progress.

Background to the strike

The industrial action was driven by concerns over alleged non-remittance of TSC and workers' freedom of association. The National Union of Air Transport Employees (NUATE) alleged that domestic airlines owe more than N25 billion in TSC, with Air Peace alone accounting for more than N17 billion.

NUATE President Ben Nnabue said the unions were demanding freedom of association in line with Nigerian law and international labour conventions. The Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) President, John Ogbe, raised concerns about casualisation and the absence of collective bargaining agreements among some operators.

The unions said they initially avoided stopping all airlines because of the impact on passengers, but proceeded against Air Peace because of the scale of its alleged outstanding TSC and its refusal to engage in negotiations. The action targeted Air Peace's domestic operations at the General Aviation Terminal (GAT), also known as MMA1, in Lagos, and Abuja airport.

At MMA1, passengers were stranded for hours after terminal gates were shut. Nairametrics observed the arrival section reopening at about 2:25pm, allowing passengers to enter the terminal ahead of the resumption of operations. Air Peace later announced through the terminal's public address system that some afternoon flights would proceed, while some morning flights had been cancelled.

What is TSC?

The Ticket Sales Charge is a statutory 5% charge collected by airlines on behalf of the NCAA on tickets for flights originating in Nigeria. Under the revenue-sharing formula, the NCAA receives 56%, the Nigerian Airspace Management Agency (NAMA) 22%, the Nigerian Meteorological Agency (NiMet) 9%, the Nigerian College of Aviation Technology (NCAT) 7% and the Nigerian Safety Investigation Bureau (NSIB) 6%.

The NCAA says TSC accounts for about 85% of its revenues and funds key functions including safety oversight, certification, licensing and inspections.

Keyamo's resolutions aim to address the outstanding TSC obligations and the unions' concerns over workers' freedom of association, while preventing further disruption to flight operations.