The Nigeria Civil Aviation Authority (NCAA) has announced the temporary suspension of its previously communicated “No Pay, No Service” directive against airlines with outstanding statutory remittances.
The Authority stated that the decision was made following extensive consultations within the aviation industry and a careful review of current operational realities, particularly the rising cost of aviation fuel and its impact on airline operations and overall sector stability.
According to the NCAA, the suspension does not amount to a cancellation, waiver, or forgiveness of the affected airlines’ statutory financial obligations, stressing that such a decision is beyond the Authority’s mandate.
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The Authority 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, stabilize the aviation industry, and safeguard airline operations.
The NCAA emphasized that all affected operators remain fully responsible for settling their statutory debts. It added that structured engagements would continue with individual airlines to ensure debt recovery in a manner that supports both regulatory compliance and industry stability.
Clarifying the nature of the 5% percent Ticket and Cargo Sales Charge, the Authority explained that the charge is a statutory requirement under the Civil Aviation Act and forms part of the cost of air travel and cargo services in Nigeria. It noted that the funds are collected by airlines at the point of ticket and cargo sales on behalf of the aviation ecosystem and are expected to be remitted to the NCAA for designated purposes.
The Authority stressed that the charge does not constitute airline operating profit or revenue and should not be treated as such.
It further explained that the remitted funds are shared among the NCAA and other critical aviation service providers responsible for maintaining safe, efficient, and internationally compliant aviation operations.
The NCAA also noted that it operates on a cost-recovery basis and does not receive direct Federal Government funding for its daily regulatory activities, making statutory charges critical to sustaining its oversight responsibilities.
Describing the suspension of the “No Pay, No Service” measure as a calibrated step, the statement said the move was aimed at maintaining operational stability in the aviation sector while negotiations continue toward the full settlement of outstanding obligations.
The NCAA maintained that 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.
