N47bn debt: NCAA slams ‘no pay, no service’ sanction on debtor airlines

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Any local airlines that owe the Nigerian Civil Aviation Authority (NCAA) will not be allowed to operate, according to Capt. Chris Najomo, the acting director general of the organization.

Speaking at a media forum that was held in Lagos over the weekend, the NCAA president disclosed that the airline owes several billions of naira.
In August 2022, no fewer than 23 domestic airlines owed the Nigerian aviation agencies approximately N47 billion for various operational charges. Najomo did not reveal the exact amount of money the carriers owed the agency and other parastatals.

They owed the NCAA N19 billion and $7.8 million for the statutory five percent ticket sales charge and cargo sales charge (TSC/CSC), respectively. They also owed N18 billion and N5 billion to the Federal Airports Authority of Nigeria (FAAN) and the Nigerian Airspace Management Agency (NAMA).

He said that an airline’s Air Operator Certificate (AOC) might not be renewed going forward if it did not pay off its debt.

He said that in order to carry out its debt recovery campaign, the authority had already established a task force dedicated to debt recovery.
“All NCAA debtors are required to seize services from the organization. Operators who fail to comply with the terms of service—no pay—will face severe consequences.

The federal government now receives 50% of the proceeds, so we are stepping up our cost recovery campaign. We have told the majority of the airlines to pay us what they owe. To carry out the cost recovery drive, a joint task force on debt recovery will be established, he continued.
The journey to transform the aviation sector is just getting started, according to Najomo, who unveiled his agenda for the authority.

He claims that among the things on his agenda for the year are digital transformation, increased revenue drive, Universal Safety Audit, and ISO 9001 certification.

According to Najomo, the NCAA is dedicated to streamlining the approval process by putting in place a simplified certification/licensing system.

He claims that this will apply to additional permissions, authorizations, and approvals.

“This is a spin-off of the ease-of-doing-business philosophy aimed at promoting the expansion of the aviation sector.”

Speaking about consumer protection, the NCAA president revealed that all Nigerian airports have consumer protection officers keeping an eye on airline operations.

He went on to say that while some delays and cancellations are out of the airlines’ control, when they are, they will be held liable and have to pay as per the rules.

He made a suggestion about setting up a portal where travelers could register their grievances for quick consideration and resolution.

“The top priority is ensuring airlines comply with Part 19 of the Nig. Cars 2023 (Consumer Protection Regulations). In the Nigerian aviation sector, we’ll make sure that customers receive excellent service, that their rights are always upheld, and that airlines promptly attend to passengers in the event of a disruption in service,” he declared.

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