The Nigeria Civil Aviation Authority (NCAA) wishes to inform stakeholders in the aviation industry that the previously communicated enforcement of the “no pay, no service” directive in respect of certain airlines withoutstanding statutory remittances has been temporarily suspended.
According to a press released by Director-General Civil Aviation, Capt. Chris Najomo, This decision follows extensive consultations within the sector and a careful review of current operating realities,particularly therising 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. It would be recalled that His Excellency, President Bola Ahmed Tinubu GCFR, in his magnanimity, already approved a 30% discount on such outstanding fees owed by domestic airlines to aviation agencies, including NCAA.
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 highcost 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.
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The 5% Ticket and Cargo Sales Charge is a statutory component of the aviation system in Nigeria
required by the Civil Aviation Act,and embedded in the cost of air travel and cargo services. 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 theNCAA 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.
These funds, after remitted, are not retainedby a single institution; they are shared among the
regulator (NCAA) and key aviationservice providerswhich perform specific responsibilities that
collectively sustain safe, efficient, and internationally compliant aviation operations.
Withinthis structure, the Nigeria Civil Aviation Authority operates on acost 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.
The temporarysuspension 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.
NCAA’s decision is, therefore, predicated on maintaining a balance between regulatory enforcement
and the need to ensure that the industry continues to function without avoidable disruption, while still upholding the principlethat statutory charges already collectedmust be remittedfor their intended purposes.
