FG urged to allow aviation agencies enjoy 100% control of IGR

T HE Chairman, House Committee on Aviation, Honourable Nnolim Nnaji, pleaded that the aviation agencies should be allowed to enjoy 100 per cent retention of their internally generated revenues (IGRs) in order to ensure continued development and maintenance of the critical infrastructures in the sector.

Nnaji, who described  the country’s aviation sector as pivotal to the overall development of the national economy, because of its speed in the movement of top players in the industrial sector, declared: “Aviation can stimulate foreign direct investments, (FDIs) if well-developed so we must do whatever is possible to ensure that our infrastructure is up to date and in line with the global standards at all times.”

Nnaji, a member representing Nkanu East/West Federal Constituency made the submission on the floor of the House in Abuja during a debate on the 2020 Budget Appropriation Bill transmitted to the National Assembly by President Mohammadu Buhari.

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Equally, the  House of Representatives called for stoppage of 25% compulsory remittances by aviation agencies to the centre, stating that the agencies need the revenues for infrastructure development, training and modernisation of airport facilities.

According to him,  the aviation agencies needed the internally generated revenues to provide safety, critical personnel and manpower development; so they do not need to be included in the Ministry, Department and Agencies (MDA), noting that most of the revenues generated by the agencies are debt recovery and not profits.

He suggested that the 25 per cent of the IGR should be kept in a consolidated fund for a period of ten-year-rolling  plan for development and maintenance of aviation infrastructures,  adding that such will trigger off robust commercial activities in and around airports which the government would in turn reap from, through Value Added Tax (VAT) and other tariffs.

His words: “If our aviation infrastructures are well funded and they are up to standards, investors will feel comfortable to come into the country and invest.

Our international airports create the first impression of Nigeria to the visitors. The feelings they get from the airports will affect their confidence level in our economy and that is why we must strive to give them maximum attention when it comes to funding”.

For Nnaji, rather than take from the sector, the federal government should invest more in aviation because the industry is still at a developmental stage hence; “if we sufficiently invest in the sector, we will adequately harness the potentials that are abound in the industry.

“The aviation industry has the capability of generating millions of employments because of the multiplier effects on other ancillary companies that will spring up if well developed. There is no reason why our airports should not have hotels like several other international airports across the globe so that someone who wishes to transact his business at the airport can relax and do so comfortably and fly back. With such you stimulate activities and make the airports more viable,” the House Committee Chairman on Aviation said.