Nigeria Civil Aviation Authority has suspended plans to enforce its proposed “no pay, no service” policy against domestic airlines owing statutory charges, following consultations with operators and concerns over rising operational costs in the aviation sector.
NCAA
Director-General of Civil Aviation, Chris Najomo, said the decision followed a review of prevailing challenges facing airlines, particularly the rising cost of Jet A1 aviation fuel.
The NCAA had earlier issued a memo on May 22 placing at least 11 domestic carriers on a “no pay, no service” list over outstanding debts owed to aviation agencies.
Affected airlines reportedly included Air Peace, Ibom Air, Overland Airways, Arik Air, United Nigeria Airlines, Max Air and Caverton Helicopters.
Industry sources said airlines immediately began discussions with the regulator after the directive was announced, leading to the temporary suspension of enforcement.
The NCAA clarified that the suspension did not amount to a cancellation or waiver of the debts, adding that all affected airlines remained responsible for settling their statutory obligations.
According to the authority, engagements with operators would continue to ensure compliance while avoiding disruptions to flight operations and passenger services.
The regulator also referenced earlier intervention measures approved by President Bola Tinubu, including a 30 per cent discount on outstanding charges owed by domestic airlines to aviation agencies.
The measure, it said, was introduced to cushion the impact of high aviation fuel costs and stabilise the sector.
The NCAA defended the five per cent Ticket and Cargo Sales Charge imposed on airlines, describing it as a statutory levy established under Nigeria’s Civil Aviation Act.
“The charge is not part of airline revenue or operating profit and should not be treated as such,” the authority stated.
It added that the agency operates largely on a cost-recovery basis and depends on remittances from operators to sustain regulatory oversight and aviation safety functions.
According to the NCAA, suspending the enforcement action was intended to balance regulatory compliance with the need to maintain operational stability in the aviation industry.
The authority reaffirmed its commitment to recovering all outstanding debts while supporting the long-term sustainability of domestic airline operations.
