The Nigeria Civil Aviation Authority (NCAA) has decided to temporarily halt the enforcement of its proposed 'no pay, no service' policy against domestic airlines that owe statutory charges. This decision comes after discussions with operators and concerns about rising operational costs in the aviation sector.
Reasons for Suspension
Director-General of Civil Aviation Chris Najomo stated that the decision was made after reviewing the current challenges faced by airlines, particularly the significant increase in the cost of Jet A1 aviation fuel. The NCAA had earlier issued a memo on May 22, placing at least 11 domestic airlines on a 'no pay, no service' list due to mounting debts owed to aviation agencies.
Affected Airlines
Affected carriers reportedly include Air Peace, Ibom Air, Overland Airways, Arik Air, United Nigeria Airlines, Max Air, and Caverton Helicopters, among others. Industry sources indicate that airlines immediately initiated discussions with the regulator after the directive was announced, leading to the temporary suspension of its implementation.
No Cancellation of Debts
The NCAA clarified that this move does not mean a cancellation or waiver of outstanding debts. All affected airlines remain fully responsible for settling their statutory obligations. The authority stated that structured engagements with operators will continue to ensure compliance while avoiding disruptions to flight operations and passenger services.
Previous Measures
The regulator also referenced earlier measures approved by President Bola Tinubu, including a 30 percent discount on outstanding charges owed by domestic airlines to aviation agencies. This was intended to help cushion the impact of high fuel costs and stabilize the sector.
Ticket and Cargo Sales Charge
The NCAA defended the controversial five percent Ticket and Cargo Sales Charge, describing it as a statutory levy established under Nigeria's Civil Aviation Act. It explained that airlines merely collect the charge on behalf of aviation agencies responsible for maintaining safety oversight and operational infrastructure within the industry. 'The charge is not part of airline revenue or operating profit and should not be treated as such,' the authority said.
Funding and Sustainability
The NCAA further noted that it operates largely on a cost-recovery basis and does not receive direct federal government funding for day-to-day regulatory activities. Therefore, remittances from operators are essential to sustaining oversight and aviation safety functions.
Balancing Compliance and Stability
According to the regulator, suspending the enforcement action was intended to balance strict regulatory compliance with the need to maintain operational stability across Nigeria's aviation industry. The authority added that it remains committed to recovering all outstanding debts while pursuing solutions that support both enforcement and the long-term sustainability of domestic airline operations.
