The Nigeria Civil Aviation Authority (NCAA) has temporarily suspended the enforcement of its “no pay, no service” directive against airlines with outstanding statutory remittances, citing concerns over industry’s current operational realities.
The Director-General of NCAA, Capt. Chris Najomo made this known in a statement on Sunday in Lagos.
Mr Najomo said the decision followed extensive consultations and a review of prevailing challenges affecting airline operations, particularly the increasing cost of aviation fuel.
According to him, the suspension should not be interpreted as a cancellation, waiver, or forgiveness of airlines’ financial obligations, stressing that affected operators remain fully responsible for settling all outstanding statutory debts.
The NCAA recalled that President Bola Tinubu had earlier approved a 30 percent discount on outstanding fees owed by domestic airlines to aviation agencies, including the NCAA.
He added that the discount was part of measures aimed at cushioning the impact of rising Jet A1 fuel prices on operators.
The intervention, according to Najomo, formed part of broader Federal Government efforts to support airline operations and maintain stability within the aviation sector.
He added that NCAA would continue to engaging airlines individually through structured arrangements to ensure debt recovery while balancing compliance requirements with industry sustainability.
Najomo explained that the five percent Ticket and Cargo Sales Charge was a mandatory component established under the Civil Aviation Act and incorporated into the cost of passenger and cargo services.
All affected operators, he said therefore, remained fully responsible for the settlement of their statutory debts, and the NCAA will pursue structured engagements with airlines individually, to ensure recovery.
‘The 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.
“It must be emphasised 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 they are remitted, are not retained by a single institution; they are shared among the regulator (NCAA) and key aviation service providers.