TSA: strike looms as aviation unions meet over 50% deductions from agencies

The nation’s aviation industry may witness yet another strike if the federal government and unions fail to reach a common front over issues bordering on TSA.

Already, the General-Secretary of the various unions in the sector, are set to meet next week, in Lagos, to deliberate on specific action to take to stop the imposition of a 50 percent deduction from some of the aviation agencies’ Internally Revenue Generation (IGR)

On their part, the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN), have warned that the aviation unions may be compelled to embark on an industrial action to force the withdrawal of the agencies from the Treasury Single Account (TSA).

Speaking in his welcome address at the National Executive Council ‘Ibadan 2024’ with the theme: ‘Challenges of Labour Unions In A Depressing Economy: Aviation Sector In View,’ Barr Ahmadu Illitrus, the President of ATSSSAN, disclosed that the General Secretary of the major unions in the sector in Nigeria, had been mandated to meet next week, to deliberate on the issue and give feedback to the presidents of their unions.

The TSA, which was introduced on October 15, 2022, commenced with 25 percent deductions from all revenue-generating agencies of the Federal Government, including four agencies in the sector.

But, a few months later, the government increased it to 40 percent, while President Bola Tinubu in January 2024, increased the deductions to 50 percent.

Iliitrus said that the new regime had commenced and feared this may have a dire strait effect on the agencies.

Four aviation agencies are affected by the TSA policy, they are the Nigeria Civil Aviation Authority (NCAA), the Federal Airports Authority of Nigeria (FAAN), the Nigerian Airspace Management Agency (NAMA) and the Nigerian College of Aviation Technology (NCAT).

Illitrus insisted that the agencies in the sector were not revenue-generating organisations and wondered why they should be treated as such.

He also warned that if the aviation agencies were not removed, it may affect the forthcoming International Civil Aviation Organisation (ICAO) security audit.

The ATSSSAN President insisted that the continuous deduction of the agencies’ funds was against the ICAO Document 1982, on charges and cost recovery.

According to him, the document specified that charges imposed on organisations in the sector should be to recover costs, not necessarily to make a profit, stressing that the agencies have been following this document to the letter.

He said: “This issue to me is an existential one in the industry. We have been on this matter and have written several letters in the past to the government, explaining why the aviation agencies should be removed from the remittance of their IGRs under the Fiscal Responsibility Act. Our reasons are very clear. In aviation, what we do as government agencies, we don’t make a profit per sale, we charge for services.

“We took this issue with the outgone minister, Sen. Hadi Sirika and the moment Mr Festus Keyamo was appointed as the new minister for the sector, we tabled this matter before him and in our interactions, he gave us his words that something was going to be done about it.

“As I speak to you, the implementation of that 50 percent has commenced and the agencies are groaning because of the dire resources. The worst of it all is that their accounts were blocked and another TSA account was opened for them. They were unable to access funds to service their various operations. Agencies like NAMA, NCAA, NCAT. Even where students’ school fees go, which include feeding money, 50 percent is deducted.

“The General Secretary of the various unions would meet in Lagos in the next one week to consider positions for the consideration of the various unions. We hope that in the next one week, we should be able to take a position to communicate to the government and if nothing is done, we may be forced to embark on a protest in the future. The decision will be made in the next week.”