Navigation Settlement Arrangement Nigerian

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Navigation Settlement Arrangement Nigerian

The navigation settlement arrangement in Nigeria refers to the structured system managed by the Nigerian Airspace Management Agency (NAMA) for billing and collecting charges from aircraft operators for the use of its air navigation services (ANS). This system is crucial for funding the maintenance, modernization, and operation of the country’s extensive air traffic control infrastructure.

Navigation Settlement Arrangement Nigeria

Governing Authority

The Nigerian Airspace Management Agency (NAMA) is the sole entity responsible for:

Providing Air Navigation Services (ANS).
Setting, invoicing, and collecting all aviation charges related to air navigation.
Managing international agreements related to air navigation fees.

The Federal Airports Authority of Nigeria (FAAN) handles separate aerodrome charges (landing, parking, passenger service charges).

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Navigation Settlement Arrangement Nigeria

Regional Airport Navigation Aids

Secondary airports maintain basic navigation capabilities:

Airport	Runway	Navigation Aids	Remarks
Aqaba (AQJ)	3,000m	ILS CAT I, VOR	Red Sea gateway
King Hussein (OMF)	3,665m	VOR/DME	Military-civil use
Mafraq (MFQ)	2,745m	NDB	Cargo operations

Future Development Roadmap

1. Aviation Modernization Program

Installation of new primary surveillance radar
ADS-B expansion to cover entire FIR
Controller-pilot data link communications (CPDLC) implementation
Solar-powered navigation aids at regional airports

2. Satellite-based augmentation system

Satellite-based augmentation system (SBAS)
Remote tower technology implementation
AI-powered air traffic flow management
Drone traffic integration systems

3. Maritime Navigation Upgrades

VTS expansion to cover entire EEZ
E-navigation system implementation
Smart buoy network deployment
Port community system digitalization

4. Long-Term Vision:

Autonomous vessel traffic management
Blockchain-based shipping documentation
Integrated coastal surveillance network
Green port certification initiatives

Why Choose Us

Why Choose The Network Plan?

Navigating international aviation regulations requires precision. We handle:

ISAGO & IATA

ISAGO & IATA-certified handlers

Cost transparency

Cost transparency with no hidden fees

24/7 support

24/7 support for delays or diversions

Sustainability

Electric GSE and waste reduction programs

Types of Navigation Charges

The navigation settlement encompasses these key charges levied by NAMA:

Overflight Charges: Fees for aircraft transiting Nigerian airspace without landing.
Terminal Navigation Charges: Fees for air traffic services provided during the approach and departure phases within the terminal control areas of Nigerian airports.
En-route Navigation Charges: Fees for air traffic services used while flying through the Lagos and Kano Flight Information Regions (FIRs).

Note: Landing and Parking fees are charged by FAAN, not NAMA.

Calculation Method

Charges are calculated using a Formula-Based system, in line with ICAO guidelines.

Unit Rate: NAMA establishes a cost unit rate (in USD) for its air navigation services, which is reviewed periodically.
Distance Factor: For overflight and en-route charges, the distance flown within the Nigerian FIR is a key factor.
Weight Factor: The aircraft’s Maximum Takeoff Weight (MTOW) is the primary factor for all charges.
The general formula is: Charge = Unit Rate × Distance Factor × Weight Factor

Billing and Payment Process

Data Collection: NAMA collects flight data from its radar/ATC systems and submitted flight plans.
Invoice Generation: Invoices are generated and sent monthly to the registered operator or their designated billing agency.
Currency: All invoices are issued in US Dollars (USD), the standard currency for international aviation charges.
Payment Terms: Standard payment terms are typically 30 days from the invoice date. Late payments can incur significant penalties and may lead to operational restrictions.
Payment Methods: Payments are made via international bank transfer to NAMA’s designated bank accounts.

Designated Billing and Settlement

NAMA manages its billing directly but also works with international systems.

Direct Billing: NAMA often sends invoices directly to airline operators.
IATA Billing and Settlement Plan (BSP): Many airlines settle Nigerian navigation charges through the IATA BSP, which consolidates payments to multiple service providers. NAMA is a participant in this system.
Billing Agents: Airlines may also use third-party billing and settlement agents to manage their payments.

Key Considerations for Operators

Accuracy of Flight Plans: Ensure flight plans (FPL) are filed accurately with the correct aircraft type and MTOW. Discrepancies can lead to incorrect billing.
Exemptions: State, military, and certain humanitarian flights may be exempt from charges, but this requires prior coordination and official approval from NAMA.
Disputes: Any discrepancies in invoices must be addressed promptly with NAMA’s Revenue Unit, providing supporting evidence (e.g., radar tracks, flight records). The process for disputes can be stringent.
Penalties: Nigeria is known for strictly enforcing payment deadlines and imposing penalties for late payments.

How to Arrange/Pay

Registration: Ensure your airline is correctly registered with NAMA for billing purposes.
Invoice Reception: Receive monthly invoices directly from NAMA or via the IATA BSP.
Review: Carefully review the invoice against your own operational records.
Payment: Execute the bank transfer to NAMA’s specified bank account within the 30-day payment term to avoid penalties.

Contact Points for Queries:

For Billing Inquiries: Director of Finance & Accounts, Nigerian Airspace Management Agency (NAMA), NAMA Headquarters, Abuja.
For Technical/Operational Inquiries: Director of Operations, NAMA.

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