•Regulator backs down on ‘no pay, no service’ order against indebted airlines
•Airline operators reject debt claim
The Nigeria Civil Aviation Authority, NCAA, has suspended the enforcement of its proposed “no pay, no service directive against domestic airlines owing statutory charges.
But Airline Operators of Nigeria, AON, yesterday faulted NCAA’s debt claim, disclosing that all services rendered airline operators were fully paid for in advance on a cash-before-service basis.
However, Director-General of Civil Aviation, NCAA, Capt. Chris Najomo, said the decision to suspend enforcement followed extensive consultations with stakeholders and a review of prevailing conditions in the industry, particularly the soaring cost of Jet A1 or aviation fuel.
Recall that the NCAA had in a May 22 memo, placed no fewer than 11 airlines on a no pay, no service list following mounting debts.
Most of the domestic airlines, including Air Peace, Ibom Air, Overland, Arik Air, United Nigeria Airlines, Max Air, Caverton, among others, are on the list.
It was learned that the airlines immediately initiated talks with the NCAA which explained why the implementation was put on hold.
The NCAA in the DG’s statement, however, clarified that the suspension did not amount to a waiver, cancellation or forgiveness of outstanding debts owed by airlines.
According to the authority, all affected carriers remain fully responsible for the settlement of their statutory obligations, while the NCAA would continue structured engagements with operators to ensure compliance without disrupting flight operations.
The authority recalled that President Bola Tinubu had earlier approved a 30 per cent discount on outstanding charges owed by domestic airlines to aviation agencies as part of measures to cushion the impact of high fuel costs and stabilise the sector.
The NCAA also defended the controversial five per cent Ticket and Cargo Sales Charge, describing it as a statutory levy embedded in ticket and cargo sales as provided under the Civil Aviation Act.
It explained that the charge is collected by airlines on behalf of the aviation ecosystem and is expected to be remitted to the regulator and other aviation service providers responsible for maintaining safe and efficient operations.
“The charge is not part of airline revenue or operating profit and should not be treated as such,” the authority stated.
The regulator further noted that it operates on a cost-recovery basis and does not receive direct federal government funding for its daily regulatory activities, making statutory remittances critical to sustaining oversight and safety functions.
The NCAA said the temporary suspension of the enforcement measure was a calibrated step aimed at balancing regulatory enforcement with the need to avoid disruption in the aviation industry.
The authority added that while it remains committed to ensuring full recovery of outstanding debts, it would pursue a framework that supports both compliance and operational sustainability within the sector.
Airline operators reject debt claim
Meanwhile, Airline Operators of Nigeria, AON, has faulted the regulatory agency over its earlier decision to withhold services from 11 domestic airlines, pending the settlement of their outstanding financial obligations.
AON, in a statement yesterday, disclosed that all services rendered by NCAA to domestic airline operators were fully paid for in advance on a cash-before-service basis.
It, however, clarified that what the NCAA described as outstanding charges related to the five per cent Ticket Sales Charge, TSC, whichwas different from regulatory service fees.
The operators also urged the federal government to amend the Civil Aviation Act to empower NCAA to directly collect appropriate fees and charges from passengers, saying the measure should take effect from June 1, 2026.
The statement read: “The AON wishes to make it clear that all cost recovery services rendered by the NCAA to domestic airline operators are paid for fully in advance on a cash-before-service basis.
“For clarity, the NCAA issues an invoice for every regulatory service it provides, whether for the validation of crew operating licences, aircraft inspections, documentation renewals, or any other service within its regulatory mandate. Operators are then required to settle all such invoices in advance, and compliance is strictly observed before the NCAA renders any regulatory service.”
”In practice, no domestic airline in Nigeria receives NCAA regulatory services without first making the full payment of invoices issued to it by the NCAA. This long-standing policy and procedure remains firmly in place. Consequently, suggestions that domestic airline operators are indebted to the NCAA for regulatory services are factually inaccurate.
What the NCAA refers to as ‘outstanding charges’ relates solely to the five percent (five per cent) Ticket Sales Charge, TSC, a Tax imposed by the NCAA on passengers for no services rendered to passengers and not in consonance with the dictates of international aviation. This is entirely different from regulatory service fees.
“The AON also notes that several member airlines maintain dedicated accounts, from which the NCAA draws down its monthly remittances, until the force majeure caused by the Iran -Israel/USA conflict, that had put a lot of financial pressures on airlines worldwide.
“Notwithstanding this arrangement, the AON had formally appealed to the federal government through the office of Minister of Aviation & Aerospace Development, to suspend the payment of all statutory charges temporarily, as an interim measure to assist airlines in managing their cash flows during the current period of severe financial stress caused by the increase in the cost of Jet Al.
”As an interim response, President Bola Tinubu graciously granted a 30 per cent concession, while waiting for the government decision on the other aspects of the AON intervention request. While the AON acknowledges and appreciates this gesture, we had appealed for a meeting with Mr. President to discuss further reliefs, a request that is yet to be granted.
“The AON reiterates its position that the NCAA is a regulatory body, not a revenue-generating agency. The NCAA does not fund any aspect of our businesses or render any direct service to passengers.
“Each and every service it provides to airline operators are fully paid for in advance before such is rendered. In view of the above, the AON calls on federal government to urgently amend the Civil Aviation Act to empower the NCAA to collect whatever appropriate fees and charges are due directly from passengers or whoever else, without routing such through the domestic airlines. We request this to take effect from June 1, 2026.’’
