The Nigerian Civil Aviation Authority (NCAA) has temporarily suspended the enforcement of its “no-pay-no-service” directive against airlines with outstanding statutory remittances.
In a statement on Sunday, Chris Najomo, director-general (DG) of the NCAA, said the decision followed a review of current operating realities in the sector, particularly the rising cost of aviation fuel and its impact on airline operations and overall industry stability.
However, the DG clarified that the suspension does not represent a cancellation, waiver, or forgiveness of the affected airlines’ outstanding obligations.
“It would be recalled that His Excellency, President Bola Ahmed Tinubu GCFR, in his magnanimity, already approved a 30% discount on such outstanding fees owed by domestic airlines to aviation agencies, including NCAA,” the statement reads.
“This relief, as contained in a statement by the Honourable Minister of Aviation and Aerospace Development, is 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.”
Najomo said all affected operators remain fully responsible for settling their statutory debts.
He said the NCAA would pursue structured engagements with individual airlines to ensure recovery while maintaining industry 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,” he said.
“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.
“It is not a part of operating profit or revenue for the collecting airline, and must therefore 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.
“Within this structure, the Nigeria Civil Aviation Authority operates on a cost recovery basis and does not receive direct funding from the Federal Government for its day-to-day regulatory activities.”
Najomo said the funds derived from statutory charges are not only essential but critical to sustain oversight functions.
He said the temporary suspension of the directive is aimed at maintaining operational stability within the sector while discussions continue toward full settlement of outstanding obligations.
“NCAA’s decision is, therefore, predicated on maintaining a balance between regulatory enforcement and the need to ensure that the industry continues to function without avoidable disruption, while still upholding the principle that statutory charges already collected must be remitted for their intended purposes,” Najomo added.
The NCAA had placed 11 domestic airline operators on a “no-pay-no-service” sanction list over outstanding financial obligations.
The regulator instructed all its directorates to withhold services from the affected airlines pending financial clearance.
The airlines listed are Air Peace Limited, Ibom Air Limited, Arik Air Limited, United Nigeria Airlines, Umza Air, NG Eagle, Max Air Limited, Caverton Helicopters, Overland Airways, Rano Air, and ValueJet.
