NCAA grants airlines 90-day reprieve on advance payment guarantees
The Nigeria Civil Aviation Authority (NCAA) has granted airline operators a 90-day grace period on the implementation of Advance Payment Guarantees (APGs) for the remittance of the statutory five per cent Ticket Sales Charge (TSC).
The reprieve followed a meeting between the NCAA and the Airline Operators of Nigeria (AON) held on Monday at the Authority’s corporate headquarters in Abuja.
The engagement was convened after the AON sought clarification on the requirement for airlines to provide bank-backed APGs, a measure introduced by the NCAA to safeguard funds collected from passengers on behalf of the Nigerian aviation system.
Speaking at the meeting, the Director-General of Civil Aviation, Capt. Chris Najomo, said the NCAA is empowered under the Civil Aviation Act, 2022 (as amended), to collect the five per cent TSC on a cost-recovery basis. He explained that the charge consists of funds paid by passengers and held in trust by airlines before being remitted to the Authority for distribution among key aviation agencies.
Capt. Najomo expressed concern over persistent delays in remittances by some operators, noting that the APG requirement is intended to strengthen compliance, improve remittance timelines and ensure predictable funding for effective regulation of the aviation sector.
He announced the approval of a 90-day deferment of the APG requirement to allow airline operators regularise outstanding remittances, urging them to make full use of the grace period. He also reaffirmed the Authority’s commitment to maintaining industry stability and ease of doing business, while upholding its statutory mandate.
Responding on behalf of the AON, the Chief Executive Officer of Overland Airways, Capt. Edward Boyo, thanked the NCAA for the engagement and assured that all Air Operator Certificate holders would meet their financial obligations within the deferment period.
Officials at the meeting included the Director of Operations, Licensing and Training Standards, Capt. Donald Spiff; the Director of Air Transport Regulation, Mrs Olayinka Babaoye-Iriobe; the Director of Finance and Accounts, Mr Olufemi Odukoya; and the Director of Legal Services and Company Secretary, Barrister Mary Tufano-Eche.
