The Nigeria Civil Aviation Authority (NCAA) has suspended its enforcement of the “No-pay, No-service” directive against domestic airlines over unpaid statutory remittances, citing the need to safeguard stability in the aviation sector.
In a statement issued on Monday by the Director-General of the NCAA, Chris Najomo, the regulator explained that the decision followed wide consultations with industry stakeholders and a review of current operational challenges facing airlines.
The move comes amid rising concerns from operators that strict enforcement of the directive could worsen financial pressure already affecting domestic carriers, particularly due to high aviation fuel costs, foreign exchange volatility, and increasing operational expenses.
However, the authority made it clear that the suspension does not cancel or forgive any debts owed by airlines.
The statement partly read, “This decision follows extensive consultations within the sector and a careful review of current operating realities, particularly the rising 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.”
The NCAA also referenced earlier intervention by President Bola Tinubu, who approved a 30 per cent reduction in outstanding charges owed by domestic airlines to aviation agencies, aimed at easing the burden of high Jet A1 fuel costs and supporting the sector.
According to the authority, the federal government’s intervention is part of broader efforts to maintain stability in airline operations and prevent disruptions within the industry.
It stressed that airlines remain responsible for settling all outstanding obligations, adding that it would continue structured engagement with operators to ensure recovery while avoiding disruption to the sector.
The statement further read, “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 high cost 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,” the authority stated.
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Explaining the charges in dispute, the regulator said the 5 per cent Ticket and Cargo Sales Charge is a statutory levy created under the Civil Aviation Act and included in the pricing structure of air travel and cargo services.
It further clarified that the charge is collected by airlines on behalf of the aviation system and must be remitted to the NCAA for specific regulatory purposes, stressing that it is not airline revenue.
Najomo emphasised, “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 the NCAA for defined purposes.
“It is not a part of operating profit or revenue for the collecting airline. These funds, after remitted, are not retained by a single institution; they are shared among the regulator and key aviation service providers which perform specific responsibilities that collectively sustain safe, efficient and internationally compliant aviation operations.
“Within this structure, the Nigeria Civil Aviation Authority operates on a cost 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.”
Describing the decision as a balancing measure, the NCAA said the temporary suspension was intended to maintain operational stability while continued discussions with airlines aim at full recovery of outstanding debts.