The Nigerian Civil Aviation Authority has temporarily halted enforcement of its “No-pay, No-service” directive against domestic airlines over unpaid statutory remittances, saying the move is necessary to preserve stability in the aviation sector.
In a statement issued on Monday and signed by the Director-General of the NCAA, Chris Najomo, the regulator explained that the decision followed extensive consultations with stakeholders and a review of the current realities facing the industry.
The development comes amid concerns from airline operators and industry stakeholders that strict implementation of the directive could deepen the financial difficulties confronting local carriers already struggling with rising aviation fuel prices, foreign exchange volatility and increasing operational expenses.
The NCAA, however, stressed that the suspension should not be viewed as a cancellation or waiver of debts owed by airlines to the authority and other aviation agencies.
The statement partly read, “This decision follows extensive consultations within the sector and a careful review of current operating realities, particularly the rising cost of aviation fuel and its impact on airline operations and overall industry stability,”
“It is important to state clearly that this suspension does not represent a cancellation, waiver, or forgiveness of outstanding statutory financial obligations as such decision is beyond the purview of the Authority.”
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The authority also recalled that President Bola Tinubu had earlier approved a 30 per cent discount on outstanding fees owed by domestic airlines to aviation agencies as part of measures aimed at easing the effect of high Jet A1 fuel prices on the sector.
According to the NCAA, the intervention is part of broader Federal Government efforts to stabilise airline operations and prevent disruptions across the industry.
The regulator maintained that all affected airlines are still required to settle their statutory obligations, adding that it would continue engaging operators individually to ensure debt recovery without destabilising the sector.
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The statement further read,“This relief, as contained in a statement by the Honourable Minister of Aviation and Aerospace Development, is part of Federal Government’s broader efforts to cushion the impact of the high cost of Jet A1 fuel, stabilize the aviation industry and safeguard airline operations.
“All affected operators, therefore, remain fully responsible for the settlement of their statutory debts, and the NCAA will pursue structured engagements with airlines individually, to ensure recovery in a manner that supports both compliance and sector stability,” the authority stated.
Explaining the significance of the disputed charges, the NCAA noted that the five per cent Ticket and Cargo Sales Charge is a statutory levy established under the Civil Aviation Act and incorporated into the cost of air travel and cargo services.
The authority warned that the charges are not airline revenue and should not be treated as operating profit.
Najomo emphasised, “It must be emphasized 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. These funds, after remitted, are not retained by a single institution; they are shared among the regulator and key aviation service providers which perform specific responsibilities that collectively sustain safe, efficient and internationally compliant aviation operations.
“Within this structure, the Nigeria Civil Aviation Authority operates on a cost recovery basis and does not receive direct funding from the Federal Government for its day-to-day regulatory activities. The funds derived from statutory charges are therefore not only essential, but critical, to sustain oversight functions.”
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Describing the suspension as a balancing measure, the NCAA said the action was carefully designed to protect both regulatory compliance and the survival of the aviation industry.
“The temporary suspension of the ‘no pay, no service’ measure is a calibrated step aimed at maintaining operational stability within the sector while continued engagement is pursued toward full settlement of outstanding obligations,” the NCAA insisted.
