STRIKE THREAT: Govt bows to pressure, reduces airlines’ IGR cut to 20%

Following threats of protests by aviation sector workers, Nigeria’s federal government has reduced the airline’s Internal Revenue (IGR) deduction to 20 per cent from the initially proposed 50 per cent.

The reduction was announced by Gbenga Saka, special adviser on digital media to Festus Keyamo, minister of aviation and aerospace development on his X page on Friday.

Ripples Nigeria has reported that flight services may be halted across Nigeria as airline union workers threaten to go on a one-day strike to protest the federal government’s decision to cut 50 percent of the internally generated revenue (IGR) of institutions in the aviation sector.

A memo from the leadership of the National Union of Air Transport Employees (NUATE), the Association of Senior Staff of the Nigerian Air Transport Service (ATSSSAN), the Association of Aviation Professionals of Nigeria (ANAP), the National Association of Aircraft Pilots and Engineers (NAAPE) and the Amalgamated Union of Civil Service Technical and Recreational Services Employees (AUPCTRE) indicated the strike would take effect from August 21, 2024.

ALSO READ:Keyamo gives green light to NAMA to stop Arik Air operations over $2.5m debt

Bowing to the demands of the aviation workers, Keyamo on Friday, said the demands of the aviation workers had been “properly noted” and their demands would be given due consideration.

Following the minister’s statement, Saka said the president had approved the reduction.

“President Bola Ahmed Tinubu has authorized a significant reduction in the Aviation Agency’s Internal Revenue (IGR) reduction—from 50% to 20%,” he said.

“This move is in line with the assurance of the Honourable Minister, Festus Keyamo to the unions and other stakeholders that President Tinubu is very committed to improving the Aviation sector.

“The President intends to respond carefully to their demands, seeking a balanced and sustainable solution that meets the fiscal needs of the government and the operational requirements of the Aviation Agency,” he said.

By Babajide Okeowo

STRIKE THREAT: Govt bows to pressure, reduces airlines’ IGR cut to 20% first appeared on Latest Nigeria News | Headlines from Ripples Nigeria.