The Nigerian Civil Aviation Authority (NCAA) has temporarily suspended its planned enforcement of the controversial 'No Pay, No Service' directive that was imposed on 11 operating airlines for failing to remit the statutory 5 per cent Ticket Sales Charge (TSC) and Cargo Sales Charge (CSC).
A source close to the NCAA disclosed that the total debts owed by these airlines to aviation agencies amount to approximately N12 billion accumulated over recent years.
The 5 per cent TSC is collected by the NCAA on behalf of four other agencies, with the revenue distributed as follows: NCAA receives 56 per cent, the Nigerian Airspace Management Agency (NAMA) gets 22 per cent, the Nigerian Meteorological Agency (Nimet) receives 9 per cent, and the Nigerian Safety Investigation Bureau (NSIB) gets 6 per cent.
Reason for Suspension
In a statement released on Sunday night, the Director-General of Civil Aviation (DGCA), Chris Najomo, explained that the temporary suspension followed extensive consultations with stakeholders and a review of prevailing operational realities in the aviation industry, particularly the rising cost of Jet A1 fuel and the need to maintain stability in the sector.
Najomo clarified that the suspension should not be interpreted as a waiver or cancellation of the airlines' outstanding debts. All affected airlines remain fully responsible for settling their statutory obligations, and the authority will continue structured engagements with operators to ensure debt recovery without disrupting airline operations.
He noted that President Bola Tinubu had earlier approved a 30 per cent discount on outstanding statutory fees owed by domestic airlines to aviation agencies as part of measures to cushion the effect of high aviation fuel prices and stabilize the industry.
Statutory Levy Details
The NCAA further explained that the 5 per cent TSC and CSC are statutory levies established under the Civil Aviation Act and collected by airlines on behalf of the aviation ecosystem at the point of ticket and cargo sales. The charge does not constitute operating revenue or profit for airlines and must therefore be remitted accordingly.
Additionally, the NCAA operates largely on a cost-recovery basis and does not receive direct Federal Government funding for its routine regulatory activities, making statutory remittances essential for sustaining oversight and safety functions.
Najomo stated: "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. The funds derived from statutory charges are therefore not only essential, but critical, to sustain oversight functions. The temporary suspension of the 'no pay, no service' measure is a calibrated step aimed at maintaining operational stability within the sector while continued engagement is pursued toward full settlement of outstanding obligations."
Airlines Affected
The NCAA had over the weekend barred 11 Nigerian airlines from accessing regulatory services. The affected airlines include Air Peace, Ibom Air, ValueJet, Arik Air, United Nigeria Airlines, Umza Air, NG Eagle, Max Air, Caverton Helicopters, Overland Airways, and Rano Air.
An internal memo dated May 22, 2026, issued by the Director of Finance and Accounts, Olufemi Odukoya, and copied to various directorates, stated that the above-mentioned airlines should not be rendered services without financial clearance from the Director of Finance and Accounts.
