The Nigeria Civil Aviation Authority (NCAA) has announced that it has temporarily suspended its earlier decision to halt services to 11 airlines over outstanding debts.
Pinnacle Daily reports that the NCAA had in an internal memo dated May 22, directed the placement of 11 domestic airlines on a “No-Pay-No-Service” list. The directive required all NCAA directorates to withhold regulatory services from the listed carriers until their outstanding debts (unpaid statutory charges) are cleared.
The debts stem from the 5 per cent Ticket Sales Charge (TSC) and Cargo Sales Charge (CSC), which airlines collect on behalf of the NCAA but have allegedly failed to remit. NCAA’s Director-General, Capt. Chris Najomo, had noted that the agency must intensify revenue collection to maintain safety oversight and meet its obligation to remit 50 per cent of internally generated revenue to the federal government.
The affected airlines include Air Peace, Arik Air, Ibom Air, United Nigeria Airlines, Max Air, ValueJet, Rano Air, Overland Airways, NG Eagle, Umza Air, and Caverton Helicopters.
However, in a statement released on Sunday, May 24, signed by the NCAA DG, Capt. Chris Najomo, the agency said the decision to temporarily suspend the enforcement of the action was taken after consultations within the sector and a review of current realities, particularly the rising cost of aviation fuel and its impact on airline operations and overall industry stability.
“The Nigeria Civil Aviation Authority (NCAA) wishes to inform stakeholders in the aviation industry that the previously communicated enforcement of the ‘no pay, no service’ directive in respect of certain airlines with outstanding statutory remittances has been temporarily suspended,” part of the statement reads.
“This decision follows extensive consultations within the sector and a careful review of current operating realities, particularly the rising cost of aviation fuel and its impact on airline operations and overall industry stability.”
The NCAA clarified that the suspension of the enforcement does not mean “cancellation, waiver, or forgiveness of outstanding statutory financial obligations,” adding that such a decision is beyond the powers of the Authority.
It recalled that President Bola Ahmed Tinubu has already granted approval for a 30 per cent discount on the outstanding fees owed by domestic airlines to aviation agencies, including NCAA as part of the Federal Government’s broader efforts to cushion the impact of the high cost of Jet A1 fuel, stabilize the aviation industry and safeguard airline operations.
The agency therefore maintained that all affected airlines remain fully responsible for paying the outstanding debts, adding that it would have structured engagements with individual airlines on the debt settlement in a manner that would not create operational disruption.
“All affected operators, therefore, remain fully responsible for the settlement of their statutory debts, and the NCAA will pursue structured engagements with airlines individually, to ensure recovery in a manner that supports both compliance and sector stability.
“The 5% Ticket and Cargo Sales Charge is a statutory component of the aviation system in Nigeria required by the Civil Aviation Act, and embedded in the cost of air travel and cargo services. It must be emphasized that this charge is collected at the point of ticket and cargo sales by airlines on behalf of the aviation ecosystem, and is expected to be remitted to the NCAA for defined purposes,” NCAA further stated.
It stressed that the Ticket and Cargo Sales Charge is not a part of operating profit or revenue for the airlines collecting it and must not be treated as such.
“These funds, after remitted, are not retained by a single institution; they are shared among the regulator (NCAA) and key aviation service providers which perform specific responsibilities that collectively sustain safe, efficient, and internationally compliant aviation operations,” the agency explained.
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It also emphasised that the Nigeria Civil Aviation Authority depends on the service charges for its day-to-day regulatory activities as it does not receive direct funding from the Federal Government.
“The funds derived from statutory charges are therefore not only essential, but critical, to sustain oversight functions,” it emphasised.
The civil aviation regulator further stated that the temporary suspension of the “no pay, no service” enforcement is a measure aimed at maintaining operational stability within the sector while it continues engaging with the airlines for full settlement of outstanding obligations.
The NCAA added that the decision is predicated on maintaining a balance between regulatory enforcement and the need to ensure that the industry continues to function without avoidable disruption.
It therefore urged airlines to always fulfil their obligation of remitting statutory charges already collected to the agencies to be used for their intended purposes.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in Mass Communication. He can be reached via @VICTOREZEJA on X