In a significant concession to aviation workers, President Bola Ahmed Tinubu has approved a reduction in the Internally Generated Revenue (IGR) deduction imposed on aviation agencies from 50 to 20 percent. The decision comes amid mounting pressure from aviation unions who had threatened nationwide protests over the policy, which they argued was crippling the sector.
The reduction in the IGR deduction is expected to provide much-needed relief to aviation agencies, including the Federal Airports Authority of Nigeria (FAAN), which have been struggling with financial constraints. The policy change is seen as a victory for aviation workers who had raised concerns about the impact of the 50 percent deduction on their ability to deliver efficient services.
Aviation Workers Set for Crucial Meeting
As news of the presidential approval filters through the sector, leaders of various aviation unions are currently engaged in a crucial meeting with the Managing Director of FAAN to discuss the implications of the new policy. The outcome of this meeting will determine the next steps for the unions and how they will respond to the government’s concession.
Prior to the president’s decision, aviation workers had been on the brink of industrial action to protest the 50 percent IGR deduction. The unions argued that the policy was undermining the financial viability of aviation agencies, leading to deteriorating infrastructure and poor service delivery. A nationwide strike would have had a significant impact on air travel, causing disruptions and inconveniences for passengers.
Impact on Aviation Sector
The reduction in the IGR deduction is seen as a positive development for the aviation sector. It is expected to improve the financial health of aviation agencies, enabling them to invest in critical infrastructure, equipment, and personnel. This, in turn, could lead to improved service delivery and enhanced passenger experience.
However, challenges remain for the sector. The aviation industry is facing headwinds from rising fuel costs, inflation, and global economic uncertainties. Addressing these challenges will require sustained government support and collaboration with industry stakeholders.
The aviation unions have welcomed the president’s decision but have cautioned that more needs to be done to address the sector’s challenges. They have called for increased government investment in the aviation sector, including the provision of necessary infrastructure and support for local airlines.
Read Also: Nationwide Aviation Protests Loom: Flight Disruptions Expected Over Revenue Policy
Government Quick Response
The government’s decision to reduce the IGR deduction for aviation agencies comes amid growing public discontent over the state of the aviation sector. Frequent flight delays, cancellations, and poor airport facilities have eroded passenger confidence. The government has come under increasing pressure to address the challenges facing the industry.
By reducing the IGR deduction, the government has taken a step towards addressing the concerns of aviation workers and improving the overall performance of the sector. However, it remains to be seen whether this move will be sufficient to restore public confidence in the aviation industry.
