NCAA suspends debt enforcement against domestic airlines

The Nigeria Civil Aviation Authority has temporarily suspended its “No-pay, No-service” enforcement directive against domestic airlines over outstanding statutory remittances, citing the need to protect operational stability within the country’s aviation industry.

In a statement signed by the Director-General of the Nigeria Civil Aviation Authority, Chris Najomo, on Monday, the authority said the suspension followed extensive consultations within the aviation sector and a careful assessment of prevailing realities in the industry.

The PUNCH also gathered that, the decision comes amid growing concerns from operators and stakeholders that strict enforcement of the directive could worsen the financial strain already confronting airlines battling rising aviation fuel prices, foreign exchange instability and increasing operational costs.

The regulator, however, clarified that the suspension should not be interpreted as a cancellation, waiver or forgiveness of the 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.”

The NCAA 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 to cushion the impact of high Jet A1 prices and support the sector.

According to the authority, the intervention forms part of the Federal Government’s broader efforts to stabilise airline operations and prevent avoidable disruptions within the industry.

The NCAA maintained that all affected airlines remain fully responsible for settling their statutory obligations, adding that engagements would continue with operators individually to ensure debt recovery without crippling the sector.

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 importance of the disputed charges, the regulator said the 5 per cent Ticket and Cargo Sales Charge is a statutory component established under the Civil Aviation Act and embedded within the cost of air travel and cargo operations.

The authority stressed that the charges do not belong to the airlines, warning that they should not be treated as part of airline operating revenue or 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.”

Describing the suspension as a balancing act, the NCAA said the move was carefully designed to protect both regulatory integrity and the survival of the 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.