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Aviation sector at risk of shutdown as aviation workers threaten action over proposed 40% revenue deduction

Aviation sector at risk of shutdown as aviation workers threaten action over proposed 40% revenue deduction

Aviation workers have issued a threat to shut down the sector unless President Bola Ahmed Tinubu reconsiders the implementation of the 40% Internal Generated Revenue (IGR) remittance policy for aviation agencies to the federal coffers.

During the 11th Quadrennial National Delegates’ Conference in Benin, Edo State, Ben Nnabue, the National Union of Air Transport Employees (NUATE), expressed concerns about the negative impact of the 40% deduction from the revenue of aviation agencies on the industry’s health. Nnabue emphasized that the burden of such deductions is unsustainable for the agencies given their level of expenditure.

Nnabue called on President Tinubu and the Minister of Finance, Wale Edun, to provide special waivers to the aviation agencies, considering the current revenue and expenditure levels in the industry. He warned that if the deductions continue, it would likely lead to the collapse of the agencies, posing a severe crisis for the national economy. Nnabue appealed to the authorities to halt the double deductions and grant special waivers to enable the aviation agencies to fulfill their statutory duties, emphasizing the importance of this appeal in the national interest.

It has been reported that the policy aligns with Section 62 of the Finance Act 2020, which allows for a 40% automatic deduction of federal agencies’ revenue to the Single Treasury Account (TSA).

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