Mon, 25 May 2026

 

NCAA suspends ‘no pay, no service’ directive against indebted airlines
 
By: Abara Blessing Oluchi
Mon, 25 May 2026   ||   Nigeria,
 

The Nigeria Civil Aviation Authority (NCAA) has temporarily suspended the enforcement of its “No Pay, No Service” directive against domestic airlines indebted to the regulator over outstanding statutory remittances.

The Director-General of the NCAA, Capt. Chris Najomo, disclosed this in a statement issued on Sunday in Lagos, following extensive consultations with stakeholders across the aviation industry.

According to Najomo, the decision was reached after a review of the operational challenges confronting airlines, particularly the rising cost of Jet A1 aviation fuel.

The NCAA had earlier, in an internal memo dated May 22, directed its departments to suspend regulatory and administrative services to 11 domestic carriers over unpaid statutory charges.

The affected airlines include Air Peace Ltd., Ibom Air, Arik Air Ltd., United Nigeria Airlines, Umza Air, NG Eagle, Max Air Limited, Caverton Helicopters, Overland Airways, Rano Air and ValueJet.

Under the directive, all NCAA directorates were instructed to withhold services from the affected operators until they either settled their debts or agreed to structured repayment arrangements.

However, Najomo clarified that the temporary suspension of the enforcement should not be interpreted as a waiver, cancellation or forgiveness of the airlines’ financial obligations.

He stressed that all affected operators remain fully responsible for the settlement of their outstanding statutory debts.

“The temporary suspension represents a measured approach aimed at preventing disruptions within the aviation sector while efforts continue toward full recovery of outstanding obligations,” he said.

Najomo also recalled that President Bola Tinubu had earlier approved a 30 per cent discount on outstanding fees owed by domestic airlines to aviation agencies, including the NCAA, as part of efforts to cushion the impact of rising aviation fuel costs on operators.

According to him, the intervention forms part of broader Federal Government measures designed to support airline operations and maintain stability in the aviation industry.

The NCAA boss stated that the authority would continue engaging airlines individually through structured arrangements to ensure debt recovery while balancing regulatory compliance with industry sustainability.

He explained that the five per cent Ticket and Cargo Sales Charge (TSC) is a statutory levy established under the Civil Aviation Act and embedded in the cost of passenger tickets and cargo services.

Najomo noted that the charge is collected by airlines on behalf of the aviation sector and is expected to be remitted to the NCAA for statutory purposes.

“It must be emphasised that this charge is collected at the point of ticket and cargo sales by airlines on behalf of the aviation ecosystem and is not part of the airlines’ operating revenue or profit,” he said.

According to him, the remitted funds are distributed among the NCAA and other key aviation service providers to support safe, efficient and internationally compliant aviation operations.

He further noted that the NCAA operates on a cost-recovery basis and does not receive direct Federal Government funding for its routine regulatory responsibilities, making prompt remittance of statutory charges essential for sustaining oversight activities.

The authority maintained that the suspension of the directive reflects a balance between regulatory enforcement and the need to ensure uninterrupted operations across Nigeria’s aviation industry.

 

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