The Nigeria Civil Aviation Authority (NCAA) has suspended for now its earlier communicated “No Pay, No Service” directive against airlines with outstanding statutory remittances.
The Authority said the decision followed extensive consultation across the aviation industry and a careful assessment of current operating realities, especially the rising cost of aviation fuel and its effect on airline operations and the overall stability of the sector.
The Authority notes that the suspension is not a cancellation, waiver or forgiveness of the statutory financial obligations of the airlines involved and that making such a decision is well outside the Authority’s scope of authority.
The Authority also reminded that President Bola Ahmed Tinubu, had earlier approved a 30 percent discount on outstanding fees owed by domestic airlines to aviation agencies including the NCAA.
The approval was announced by the Minister of Aviation and Aerospace Development, Festus Keyamo, as part of the Federal Government’s efforts to cushion the impact of the high cost of Jet A1 fuel, stabilise the aviation industry and safeguard airline operations.
The NCAA said the operators involved “continue to be fully liable for their statutory obligations.” It said it would pursue structured engagements with individual airlines to ensure debt recovery in a manner that supports both regulatory compliance and industry stability.
On the nature of the 5% percent Ticket and Cargo Sales Charge, the Authority said the charge was a statutory requirement under the Civil Aviation Act and a component of the cost of air travel and cargo services in Nigeria. It said the funds were collected by airlines at the point of ticket and cargo sales on behalf of the aviation ecosystem and were expected to be remitted to the NCAA for designated purposes.
The Authority stressed that the charge is not airline operating profit or revenue and should not be viewed as such.
“The remitted funds are shared between the NCAA and other major aviation service providers who are responsible for safe, efficient and internationally compliant aviation operations,” it also noted.
The NCAA also stated that it operates on a cost-recovery basis and does not receive direct Federal Government funding for its day-to-day regulatory activities, thus requiring statutory charges to fund its oversight functions.
The statement described the suspension of the “No Pay, No Service” measure as a calibrated step aimed at maintaining operational stability in the aviation sector, while negotiations continue towards the full settlement of outstanding obligations.
The NCAA said its decision balances regulatory enforcement with the need to avoid industry disruptions in aviation, while upholding the principle that statutory charges already collected by airlines must be remitted for their intended uses.
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