President Bola Tinubu has approved a reduction in the deductions from the internally generated revenue (IGR) of aviation agencies. The deductions, which were previously set at 50%, have now been slashed to 20%, providing a considerable relief to the sector.
This decision was made public by Gbenga Saka, the Special Adviser to the Minister of Aviation and Aerospace Development, Festus Keyamo. Saka announced the development on Thursday through his official X (formerly Twitter) account.
The reduction in revenue deductions is expected to enhance the financial autonomy and operational capacity of aviation agencies, allowing them to reinvest a larger portion of their earnings into critical areas such as infrastructure development, safety improvements, and service enhancements. This move aligns with the Tinubu administration’s broader economic strategy to boost efficiency and growth in key sectors of the economy.
Industry stakeholders have welcomed the decision, viewing it as a positive step towards revitalizing Nigeria’s aviation industry, which has faced numerous challenges in recent years, including fluctuating fuel prices, currency devaluation, and the lingering effects of the COVID-19 pandemic.
Further details on the implementation of this policy are anticipated in the coming days as the Ministry of Aviation and Aerospace Development outlines its plans to operationalize the new revenue framework.
