Why NCAA is underperforming in revenue projection – Najomo

The Nigeria Civil Aviation Authority (NCAA) has disclosed reasons why the agency has been underperforming in its revenue projection and collection targets in recent times.  Chris Najomo, the Director-General of Civil Aviation (DGCA), stated that the current gaps in revenue generation and cost recovery units by the NCAA are part of the reasons for its underperformance.

Speaking at the Aviation Finance and Revenue Assurance Summit, organised by NCAA with the Theme: ‘Enhancing Cost Recovery Capabilities and Administrative Efficiency,’ held in Lagos on Wednesday, Najomo said that there was an obvious lack of the required collaboration and synergy between revenue and cost recovery units of the authority and indigenous airlines.

Najomo who was represented at the occasion by Olufemi Odukoya, the Director, of Finance and Accounts (DFA), NCAA said that the wide gaps between revenue generated and actual collection by the NCAA from the airline were tantamount to under-optimisation.

According to him, this was mostly traceable to the poor working capital management capacity of the Chief Financial Officers (CFOs)/Heads of Accounts of the domestic airlines and their deputies on one hand and the informational inefficiency as well as lack of cooperation and synergy on the other hand.

He expressed that some of the CFOs tend not to be aware of their statutory obligations to the authority about prompt remittance, credible revenue reporting and financial dealing with the NCAA in line with international best practices and global air transport and civil aviation standards.

He added: “We do hope that the outcome of this summit will make a bold statement of intent and the starting point of an inclusive regulatory model that will drive the all-round growth and economic viability, increased safety, enhanced service delivery and exceptional passengers experience that we all crave for in the Nigerian aviation and air transportation sector.”

Najomo observed that the Nigerian economy had been through, and is still grappling with a series of macroeconomic and developmental challenges, which would require a measure of disruptive innovation in approach if the country must quickly remedy the situation.

In a bid to address the situation, Najomo emphasised that President Bola Tinubu had set out the eight-point agenda for economic restoration and growth.

He maintained that this required all agencies of government to operationalise through the efficient and effective discharge of their respective constitutional mandate and responsibilities.

Also, Najomo explained that Festus Keyamo, the Minister of Aviation and Aerospace Development, has strategically posited a five-point agenda for driving the aviation sector in line with the President’s initiatives.

Besides, Michael Awa, aviation consultant, in his presentation, ‘Improving Operational and Regulatory Environment Through Collaboration and Synergy,’ challenged airlines’ CFOs to monitor changes in government policies and regulations in a bid to ensure their airlines are in tandem with developments in the global aviation industry.

Awa explained that changes like safety, security, and environmental regulations from organisations like the International Civil Aviation Organisation (ICAO), International Air Transport Association (IATA), Airport Council International (ACI), Federal Aviation Administration (FAA) and NCAA, should continuously be monitored and updated.

He also tasked the airlines through their CFOs to ensure quick reconciliation of financial statements with the respective approved government agencies, especially the NCAA.