The Nigerian Civil Aviation Authority (NCAA) has suspended its planned enforcement of the controversial 'No Pay, No Service' directive, which was earlier imposed on 11 operating airlines for failing to remit statutory five per cent Ticket Sales Charge (TSC) and Cargo Sales Charge (CSC).
Debt Details and Stakeholder Reactions
A source close to the NCAA disclosed that the total debt of the airlines amounts to approximately N12 billion owed to aviation agencies in recent years. The five per cent TSC is collected by the NCAA on behalf of four other agencies and is shared as follows: NCAA, 56 per cent; Nigerian Airspace Management Agency (NAMA), 22 per cent; Nigerian Meteorological Agency (Nimet), nine per cent; and Nigerian Safety Investigation Bureau (NSIB), six per cent.
Suspension and Clarifications
A statement by the Director-General of Civil Aviation (DGCA), Chris Najomo, indicated that the temporary suspension followed extensive consultations with stakeholders and a review of prevailing operational realities, 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 to ensure debt recovery without disrupting operations.
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 stabilise the industry.
Statutory Levy Explanation
The agency explained that the five per cent TSC and CSC is a statutory levy established under the Civil Aviation Act, 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 be remitted accordingly.
