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Home Aviation

FAAN, State Governments Owe NAMA N25.6bn as Funding Crisis Deepens

byStephen Abebor
July 7, 2026
in Aviation, Business, Economy
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FAAN, State Governments Owe NAMA N25.6bn as Funding Crisis Deepens
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The Nigerian Airspace Management Agency (NAMA) is grappling with a worsening liquidity squeeze after outstanding debts owed by the Federal Airports Authority of Nigeria (FAAN) and three state governments climbed to N25.615 billion, raising fresh concerns over the funding of Nigeria’s air navigation services and aviation safety infrastructure.

Internal credit control records dated April 30, 2026, show that FAAN remains the agency’s largest debtor, with unpaid obligations amounting to N23.938 billion. The remaining liabilities are owed by three state governments, with Bauchi State accounting for N902.874 million, Ogun State owing N465.146 million, and Taraba State recording an outstanding balance of N309.345 million.

The growing debt burden threatens the financial stability of NAMA, the agency responsible for managing Nigeria’s airspace through the provision of air traffic control, communication, surveillance, navigation systems, and aeronautical information services that ensure safe aircraft movement across the country.

A major source of NAMA’s operational funding is the statutory 5% Ticket Sales Charge (TSC), a levy collected from airline ticket sales. The proceeds are intended to finance routine maintenance of navigation equipment, meteorological support services, radar operations, and other safety-critical infrastructure. Industry experts say prolonged delays in remitting these funds have significantly weakened the agency’s cash flow, limiting its ability to meet operational and maintenance obligations.

Aviation analysts warn that sustained funding constraints could delay the servicing and replacement of critical navigation aids, increase operational risks, and potentially contribute to flight delays or disruptions. They also caution that any deterioration in safety oversight could influence insurers’ assessment of operational risks, potentially increasing insurance costs for airlines operating within Nigerian airspace.

Stakeholders are therefore calling for an urgent and coordinated repayment framework to prevent further deterioration in the financial position of the airspace management agency. Particular attention has been directed at FAAN’s outstanding liabilities, given the airport authority’s strategic role within Nigeria’s aviation ecosystem and its own recent revenue collection challenges.

Although NAMA has yet to issue an official public statement on the outstanding obligations, industry sources indicate the agency is engaging relevant fiscal authorities to explore recovery options. These reportedly include seeking direct deductions from allocations due to indebted state governments through the Federation Account, while discussions on possible federal financial support are also understood to be under consideration.

The development comes as Nigeria’s aviation industry continues to consolidate its post-pandemic recovery through increased passenger traffic, fleet expansion, and infrastructure investments. Sector stakeholders argue that maintaining adequate funding for NAMA remains essential to preserving airspace safety, sustaining operational efficiency, and supporting the long-term growth of the country’s aviation industry.

Tags: Air traffic controlAirport InfrastructureAviation financeAviation SafetyBauchi StateFAANNAMANigeria EconomyNigerian aviationOgun StateTaraba StateTicket Sales Charge
Stephen Abebor

Stephen Abebor

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