NCAA suspends ‘no pay, no service’ enforcement over outstanding debts in aviation sector

The Nigeria Civil Aviation Authority (NCAA) has suspended the enforcement of its “no pay, no service” to airlines.

The NCAA issued the directive against airlines with outstanding statutory remittances.’

The agency had in an internal memo dated May 22, directed its directorates to suspend services to 11 domestic airlines.

The airlines affected were Air Peace Limited, Ibom Air, Arik Air Ltd., United Nigeria Airlines, Umza Air, NG Eagle, Max Air Limited, Caverton Helicopters, Overland Airways, Rano Air and ValueJet.

The Director-General of NCAA, Capt. Chris Najomo, announced the suspension of the policy enforcement in a statement on Sunday in Lagos.

Capt. 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.

He stressed that affected operators remain fully responsible for settling all outstanding statutory debts.

The NCAA DG recalled that President Bola Tinubu had earlier approved a 30 percent discount on outstanding fees owed by domestic airlines to aviation agencies, including the agency.

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 Capt. 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.

Capt. 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.

“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.

“It performs specific responsibilities that collectively sustain safe, efficient, and internationally compliant aviation operations,” Capt. Najomo said.

He emphasized that these charges were collected by airlines at the point of ticket and cargo sales on behalf of the aviation ecosystem and are expected to be remitted to the regulator.