The Nigeria Civil Aviation Authority (NCAA) has announced the temporary suspension of its previously enforced “no pay, no service” directive affecting airlines with outstanding statutory remittances.
The decision, according to the Authority, follows extensive consultations across the aviation industry and a careful assessment of prevailing operational challenges particularly the rising cost of aviation fuel and its impact on airline sustainability.
However, the NCAA clarified that the suspension does not amount to a cancellation, waiver, or forgiveness of debts owed by airlines, noting that such powers fall outside its mandate.
The Authority recalled that Bola Ahmed Tinubu had earlier approved a 30 per cent discount on outstanding fees owed by domestic airlines to aviation agencies, including the NCAA. The relief, conveyed through the Minister of Aviation and Aerospace Development, is part of broader Federal Government measures to cushion the effects of high Jet A1 fuel costs, stabilise the sector, and protect airline operations.
Despite the temporary reprieve, the NCAA stressed that all affected airlines remain fully responsible for settling their statutory obligations. It added that it will engage operators individually to ensure structured repayment in a manner that supports both compliance and industry stability.
The Authority also reaffirmed the importance of the 5 per cent Ticket and Cargo Sales Charge, describing it as a statutory requirement under the Civil Aviation Act. The charge, collected by airlines at the point of ticket and cargo sales, is not part of airline revenue or profit but is held in trust for remittance to the NCAA.
According to the regulator, these funds are subsequently distributed among key aviation service providers, including the NCAA, to support critical functions that ensure safe, efficient, and globally compliant aviation operations.
The NCAA further noted that it operates on a cost-recovery basis and does not receive direct Federal Government funding for its routine regulatory activities, making statutory remittances essential for sustaining oversight responsibilities.
It emphasised that the suspension of the “no pay, no service” policy is a measured step aimed at preserving operational stability while ongoing engagements continue toward the full recovery of outstanding debts.
The Authority reiterated its commitment to balancing regulatory enforcement with the need to avoid disruptions in the aviation sector, while maintaining that all statutory charges collected must be duly remitted for their intended purposes.