NCAA suspends its ‘No Pay, No Service’ directive for local carriers

The Nigeria Civil Aviation Authority (NCAA) has informed stakeholders that the previously communicated enforcement of the ‘no pay, no service’ directive in respect of certain airlines with outstanding statutory remittances has been temporarily suspended.

The authority stated that 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.

In a statement signed by Chris Najomo, Director-General, NCAA, he stated that the suspension does not represent a cancellation, waiver, or forgiveness of outstanding statutory financial obligations, as such a decision is beyond the purview of the Authority.

It would be recalled that President Bola Ahmed Tinubu already approved a 30 percent discount on such outstanding fees owed by domestic airlines to aviation agencies, including the NCAA.

He noted that this relief is part of the Federal Government’s broader efforts to cushion the impact of the high cost of Jet A1 fuel, stabilise 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 five percent Ticket and Cargo Sales Charge is a statutory component of the aviation system in Nigeria I required by the Civil Aviation Act, and embedded in the cost of air travel and cargo services. It must be emphasised 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, and must therefore not be treated as such,” Najomo explained.

He said these funds, after remitted, are not retained by a single institution; they are shared among the regulator (NCAA) and key aviation service providers, which perform specific responsibilities that collectively sustain safe, efficient, and internationally compliant aviation operations.

He said within this structure, the Nigerian 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, adding that the funds derived from statutory charges are therefore not only essential, but critical, to sustain oversight functions.

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, he stated.