FAAN’s mandatory e-tags for VIPs: Matters arising  

The 1995 FAAN Act (Part IV) empowers the agency to levy and collect charges from various airport users to support the maintenance and development of airport infrastructure.

The recent directive by President Bola Tinubu mandating that all Very Important Persons (VIPs), including himself and his deputy, Kashim Shettima, must pay airport toll fees, marks a significant departure from entrenched practices of entitlement among Nigeria’s elite.

While this initiative is commendable for its potential to reduce the arrogance and impunity historically displayed by VIPs, it raises several critical questions about its implementation, efficacy, and alignment with existing legal frameworks, notably the 1995 Federal Airports Authority of Nigeria (FAAN) Act.

The directive to end toll exemptions for VIPs is part of a broader suite of policy initiatives announced at the recent Federal Executive Council meeting aimed at revitalising various sectors of the economy. The policy intends to curb the widespread evasion of toll payments that has been a longstanding issue, with only 18 per cent of e-tags being sold and the remaining 82 per cent distributed as complimentary tickets or stickers. This has resulted in substantial revenue losses for the aviation sector.

The Minister of Aviation, Festus Keyamo, rightly pointed out the absurdity of a system where the wealthy and powerful evade payments while the less privileged bear the financial burden. In theory, enforcing toll payments among VIPs could potentially generate N10 billion annually, a significant sum for a struggling economy. However, the success of this policy hinges on effective implementation and strict adherence to the rule of law, both of which have historically been weak points in Nigerian governance.

The 1995 FAAN Act (Part IV) empowers the agency to levy and collect charges from various airport users to support the maintenance and development of airport infrastructure. This legal foundation should, in theory, support the new directive. However, there are concerns about whether the current infrastructure and administrative capacity of FAAN are sufficient to handle the surge in toll collection and ensure compliance among VIPs.

One critical issue is the potential for resistance and non-compliance. Given the entrenched culture of entitlement among Nigeria’s elite, there is a risk that VIPs may resort to underhanded tactics to avoid paying tolls, including lobbying for exceptions or using their influence to undermine the policy. This could lead to a cycle of disobedience, violence, and official complicity, ultimately sabotaging the initiative.

For this policy to be effective, robust technological measures must be implemented to collect toll payments efficiently, monitor financial activities, and provide clear operational metrics. Installing CCTV cameras to monitor compliance and expose corrupt practices is a necessary step. Additionally, sensitising the public and training FAAN officials will be crucial to ensure smooth implementation.

However, a significant concern is the transparency and accountability of the revenue generated. Historically, Nigeria has struggled with issues of corruption and mismanagement of public funds. To ensure that the additional revenue genuinely benefits airport infrastructure and services, there must be stringent measures in place to prevent misappropriation.

While the move to enforce toll payments among VIPs is a positive step, it is merely a small part of a much larger problem. Nigeria loses substantial revenue annually due to various systemic issues, including oil theft, illegal mining, and tax system inefficiencies. Addressing these broader issues requires comprehensive reforms and a commitment to transparency and accountability at all levels of government.

The move to enforce toll payments among VIPs is a positive step towards reducing elitist impunity, increasing revenue, and promoting fairness. However, the success of this initiative hinges on rigorous implementation, adherence to the FAAN Act, and the establishment of transparent and accountable measures.

President Tinubu and his administration must set a strong example by showing genuine commitment to reform and credible governance. Only then can these policies lead to meaningful and lasting change in Nigeria’s aviation sector and beyond.

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