President Tinubu Slashes IGR Deductions Of Govt Agencies From 50% To 20%

President Bola Tinubu has directed that the direct deduction from the Internally Generated Revenue (IGR) of government agencies in the aviation sector be reduced from 50% to 20%.

Naija News reports the move is part of efforts to ease the financial burden on the government agencies and encourage financial autonomy.

Gbenga Saka, the Special Adviser on Digital Media to the Minister of Aviation, Festus Keyamo, announced this on his X page on Friday after the Minister had appealed to aviation union members who threatened a strike action over the 50% deductions.

“President Bola Ahmed Tinubu has authorized a significant reduction in deductions from the Internally Generated Revenue (IGR) of Aviation Agencies—from 50% down to 20%.

“This move aligns with the Honourable Minister, Festus Keyamo’s assurance to workers’ unions and other stakeholders that President Tinubu is deeply committed to enhancing the Aviation sector.

“The President aims to thoughtfully address their demands, seeking a balanced, lasting solution that meets both government fiscal needs and the operational requirements of Aviation Agencies,” he said.

Based on the fresh directive, the leaders of several unions in the aviation sector, who had earlier threatened to embark on a strike, have opened discussions with the Managing Director of the Federal Airports Authority of Nigeria (FAAN) to deliberate on their stance and the implications of this policy change.

The outcome of these discussions could have significant ramifications for the operational and financial strategies of affected agencies across the nation.

The aviation unions had threatened to commence nationwide protests over the 50 percent deduction from the internally generated revenue of the agencies, a policy the workers argue undermines their operational efficiency and financial stability.

The protests were expected to affect airport operations nationwide, as workers demonstrated their frustration and called for the policy reversal.

Unions involved in the threat include employees of the Nigerian Civil Aviation Authority (NCAA), Federal Airports Authority of Nigeria (FAAN), Nigerian Airspace Management Agency (NAMA), Nigerian Meteorological Agency (NiMet), Nigerian College of Aviation Technology (NCAT), and the National Safety Investigation Bureau (NSIB).

A joint statement signed on Wednesday by Ocheme Aba, General Secretary of NUATE; Comrade Abdul Rasaq Saidu, Secretary General of ANAP; Comrade Sikiru Waheed, General Secretary of AUPCTRE; Comrade Frances Akinjole, Deputy General Secretary of ATSSSAN; and Comrade Olayinka Abioye, General Secretary of NAAPE disclosed the plans.