The Nigeria Civil Aviation Authority (NCAA) has temporarily suspended its “No-Pay, No-Service” enforcement directive against domestic airlines over outstanding statutory remittances, citing the need to safeguard operational stability in the aviation industry.
In a statement signed on Monday by the Director-General of the NCAA, Chris Najomo, the authority said the decision followed extensive consultations within the sector and a careful assessment of prevailing industry conditions.
The move comes amid concerns from stakeholders that strict enforcement of the directive could further strain airlines already grappling with rising aviation fuel costs, foreign exchange volatility, and increasing operational expenses.
The regulator, however, stressed that the suspension does not amount to a cancellation, waiver, or forgiveness of debts owed by airlines to the NCAA and other aviation agencies.
“The 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,” the statement read.
“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.”
The NCAA noted that President Bola Tinubu had earlier approved a 30 per cent discount on outstanding fees owed by domestic airlines as part of efforts to cushion the impact of high Jet A1 prices and support the aviation sector.
According to the authority, the intervention aligns with broader Federal Government efforts to stabilise airline operations and prevent disruptions within the industry.
It added that all affected airlines remain responsible for settling their statutory obligations, while structured engagements would continue to ensure debt recovery without undermining sector stability.
Explaining the disputed charges, the NCAA said the 5 per cent Ticket and Cargo Sales Charge is a statutory levy established under the Civil Aviation Act and embedded in air ticket and cargo pricing.
The regulator emphasised that the charge is collected by airlines on behalf of the aviation ecosystem and remitted for defined regulatory and service purposes, not retained as airline revenue.
“The funds are not part of operating profit or revenue for the collecting airline,” the statement said. “They are shared among the regulator and key aviation service providers responsible for sustaining safe and efficient aviation operations.”
Najomo further explained that the NCAA operates on a cost-recovery basis and does not receive direct federal funding for its day-to-day regulatory functions, making statutory remittances critical to its operations.
Describing the decision as a balancing measure, the authority said the temporary suspension was designed to maintain operational stability while continued engagement with airlines is pursued toward full settlement of outstanding obligations.
