The inability of workers of the Federal Airports Authority of Nigeria to join the National Pension Commission scheme in 2004 has caused the agency’s pension liability to reach a record high of N200bn.
This was made known by the National President of the Air Transport Services Senior Staff Association of Nigeria and the President of the Joint Aviation Trade Union’s Forum, Mr Ilitrus Ahmadu.
He disclosed this at the second annual strategic aviation trade unions leadership conference with the theme, “Synergy For Safety and Productivity Management-Labour Collaboration”, in Lagos.
He said, “On the pension liabilities of FAAN, you recall that FAAN did not join the new pension reforms as of 2004.
“Because FAAN did not join, it is a law with which they must comply. The PENCOM directed that they must comply. In the assessment to determine how much it is due for them to remit as the pension contribution of the workers and that of the management.”
“At the time it was determined, it was over N150 billion. I am talking about four or five years back. They went into some arrangements with FAAN to formalise and make certain remittances. I think FAAN was paying about N350 million every month. FAAN has not been able to meet up with that target.
As we speak, the liability has grown to over N200 billion. As we speak, FAAN is paying workers who are in retirement under the old scheme. That is a different scheme.”
The union leader described the situation as a bubble waiting to burst, saying, what is playing out is a dangerous thing.
He said that informed the discussion of the various unions in the aviation industry about airport concession, stressing that the entire issue of pension liability of the agency could affect the planned concession of some of the country’s choice aerodromes.
He further disclosed that as for the issues directly tied to concession, there is no way an entity can be concessioned with this massive liability internally.
“That is one of the things we were discussing with the former Minister of Aviation that if, as a condition, that will lighten the burden of FAAN because if you take away the major airport, then you leave FAAN with this responsibility of paying over N650m monthly, it will not survive.”
The ATSSSAN President equally lamented that the country is losing several billions of Naira yearly because of the Bilateral Air Service Agreement routes that are lying fallow.
Not a few believe that many of the air pacts that Nigeria has with other airlines are skewed against Nigeria and in favour of other nations.
“We are challenged because the Single African Air Transport Market (SAATM) has started. The pilot implementation project has started in some states. If we pride ourselves as a frontline state, promoting SAATM, why are we against an investment in a national carrier when the government has determined that it doesn’t have money to invest”.
