NCAA suspends ‘no-pay-no-service’ enforcement against indebted airlines
The Nigerian Civil Aviation Authority (NCAA) has temporarily suspended the enforcement of its “no-pay-no-service” directive earlier imposed on airlines with outstanding statutory remittances.
In a statement on Sunday, the Director-General of the NCAA, Chris Najomo, said the decision followed a reassessment of current operating realities in the aviation sector, particularly the rising cost of aviation fuel and its impact on airline operations and overall industry stability.
He, however, clarified that the suspension does not amount to a cancellation, waiver or forgiveness of the debts owed by the affected airlines.
“The 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 principle that statutory charges already collected must be remitted for their intended purposes,” he said.
He recalled that President Bola Ahmed Tinubu had approved a 30 per cent reduction on outstanding charges owed by domestic airlines to aviation agencies as part of efforts to ease pressure on the sector and stabilise operations amid high aviation fuel costs.
Najomo added that all operators remain fully responsible for settling their statutory obligations, adding that the NCAA would continue structured engagements with airlines to recover outstanding debts while ensuring industry stability.
He explained that the 5 per cent Ticket and Cargo Sales Charge is a statutory levy under the Civil Aviation Act, collected by airlines on behalf of the aviation ecosystem and remitted for regulatory and service functions, stressing that it is not part of airline operating profit.
The NCAA had earlier placed 11 domestic airlines on a sanction list over unpaid obligations, directing its directorates to suspend services to the affected operators pending financial clearance. The affected airlines include Air Peace, Ibom Air, Arik Air, United Nigeria Airlines, Umza Air, NG Eagle, Max Air, Caverton Helicopters, Overland Airways, Rano Air and ValueJet.
