Bankole Bernard, the Group Managing Director of Finchglow Holdings, has proposed the deployment of a centralised transaction data architecture and an automated settlement platform to resolve the persistent dispute over Nigeria’s five per cent Ticket Sales Charge (TSC).
The proposal aims to address the ongoing tension between airline operators and regulatory bodies regarding the collection and remittance of the levy. Bernard noted that the lack of a common transaction database has caused significant ambiguity surrounding airline ticket sales, making it difficult for all stakeholders to reach an agreement on actual revenue figures.
The suggestion, aimed at addressing the controversy over the five per cent Ticket Sales Charge, seeks to provide a single, verified source of truth for all parties involved in the aviation value chain.
Automation to resolve settlement discrepancies
The TSC is a mandatory fee applied to airline tickets, intended to generate revenue for airport development and infrastructure. However, the mechanism for calculating and collecting these funds has been a source of friction. Airlines often cite discrepancies between their internal sales records and the figures provided by regulators, leading to disputes over the accuracy of remittances.
According to Bernard, the absence of a unified data architecture prevents real-time reconciliation. By introducing a centralised system, airlines, travel agents, and the government could access the same transaction data simultaneously. This transparency would eliminate the guesswork and manual errors that currently characterise the settlement process.
An automated settlement platform would further enhance this system by allowing for the immediate processing of funds. Instead of relying on periodic manual reconciliations, which are prone to delays and errors, the proposed technology would ensure that the correct amount is calculated and transferred based on live sales data.
The Nigerian aviation sector is currently navigating a period of high operational costs, driven by foreign exchange volatility and rising jet fuel prices. In this environment, disputes over additional levies like the TSC place further strain on airline profitability and their relationships with the state.
The adoption of such a digital architecture would not only resolve the current impasse but also improve the overall efficiency of the aviation economy. A streamlined revenue collection process would provide the government with more predictable funding for airport infrastructure while giving airlines the certainty required for financial planning.
Implementation of this proposal would require a coordinated effort between Finchglow Holdings, the Ministry of Aviation, and the various airline operators to establish the necessary digital infrastructure and governance frameworks.
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