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NCAA pauses enforcement of ‘No Pay, No Service’ policy amid talks over N12bn airline debts
Photo: The Guardian Nigeria News - Nigeria and World News
2026-05-25 10:01   Business   13

NCAA pauses enforcement of ‘No Pay, No Service’ policy amid talks over N12bn airline debts

The Nigeria Civil Aviation Authority (NCAA) has suspended the enforcement of its planned ‘No Pay, No Service’ directive that was earlier targeted at 11 operating airlines over unpaid statutory charges.

The directive was initially introduced as a pressure measure due to outstanding debts estimated at about N12 billion owed to aviation agencies, arising mainly from the 5 per cent Ticket Sales Charge (TSC) and Cargo Sales Charge (CSC).These charges are collected by airlines on behalf of the aviation ecosystem and shared among key agencies including NCAA, NAMA, NiMet, and NSIB.

According to officials, the suspension followed extensive consultations with stakeholders and a review of current operational challenges in the aviation sector, especially the high cost of aviation fuel (Jet A1) which has been affecting airline operations and industry stability.

The Director-General of Civil Aviation, Chris Najomo, clarified that the suspension does not cancel or waive the debts, as all affected airlines remain fully liable to settle their outstanding obligations.He added that the authority will continue structured engagements with the airlines to recover the debts without disrupting aviation services.

The NCAA also noted that President Bola Tinubu had earlier approved a 30 per cent discount on some outstanding statutory fees to ease financial pressure on domestic carriers.The regulator further explained that the charges are not profit for airlines but statutory funds meant to sustain regulatory and safety functions.Airlines affected include Air Peace, Ibom Air, ValueJet, Arik Air, United Nigeria Airlines, Max Air, and others.

The NCAA emphasised that it operates on a cost-recovery basis and depends on these remittances to maintain effective oversight of Nigeria’s aviation sector.

Full reading at The Guardian Nigeria News - Nigeria and World News

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