The Nigeria Civil Aviation Authority (NCAA) has suspended for now its earlier communicated “No Pay, No Service” directive against airlines with outstanding statutory remittances.
The Authority said the decision followed extensive consultation across the aviation industry and a careful assessment of current operating realities, especially the rising cost of aviation fuel and its impact on airline operations and overall stability of the sector.
The NCAA emphasizes that the suspension does not constitute a cancellation, waiver or forgiveness of the statutory financial obligations of the airlines involved, and it is well beyond the Authority’s mandate to make such a decision.
The Authority also recalled that President Bola Ahmed Tinubu, had earlier approved a 30 percent discount on outstanding fees owed by domestic airlines to aviation agencies, including the NCAA.
The approval, announced by the Minister of Aviation and Aerospace Development, Festus Keyamo, was part of the Federal Government’s efforts to cushion the impact of the high cost of Jet A1 fuel, stabilise the aviation industry and safeguard airline operations.
The NCAA stressed that affected operators “are still fully responsible for meeting their statutory debts.” It added that it would continue with structured engagements with individual airlines to ensure debt recovery in a manner that supports both regulatory compliance and industry stability.
On the nature of the 5% percent Ticket and Cargo Sales Charge, the Authority said the charge was a statutory requirement under the Civil Aviation Act and a component of the cost of air travel and cargo services in Nigeria. It said the funds were collected by airlines at the point of ticket and cargo sales on behalf of the aviation ecosystem and were expected to be remitted to the NCAA for designated purposes.
The Authority stressed that the charge is not airline operating profit or revenue and should not be treated as such.
It further stated that the remitted funds are shared among the NCAA and other key aviation service providers responsible for safe, efficient and internationally compliant aviation operations.
The NCAA also pointed out that it functions on a cost-recovery basis and does not receive direct Federal Government funding for its day-to-day regulatory activities, rendering statutory charges essential to maintaining its oversight responsibilities.
The statement described the suspension of the “No Pay, No Service” measure as a calibrated step aimed at maintaining operational stability in the aviation sector, while negotiations continue towards the full settlement of outstanding obligations.
The NCAA said its decision reflects a balance between regulatory enforcement and the need to avoid disruptions within the aviation industry, while upholding the principle that statutory charges already collected by airlines must be remitted for their intended purposes.
