The Airline Operators of Nigeria (AON) has pushed back against recent claims by the Nigeria Civil Aviation Authority (NCAA), insisting that its member airlines do not owe any cost recovery charges to the regulatory body.
In a strongly worded statement, the association described media reports suggesting airline indebtedness as misleading and an attempt to regulate operators outside established frameworks. AON condemned what it termed the use of the media as a tool for enforcement.
According to the association, all cost recovery services provided by the NCAA; ranging from crew licence validations and aircraft inspections to documentation renewals are paid for in advance under a strict cash-before-service regime.
“In practice, no domestic airline receives NCAA regulatory services without full upfront payment”, the group stated, maintaining that claims of outstanding debts for such services are factually incorrect.
The AON clarified that what the NCAA refers to as “outstanding charges” relates solely to the 5 per cent Ticket Sales Charge (TSC), which it described as a tax imposed on passengers and distinct from regulatory service fees.
The association further noted that some member airlines operate dedicated accounts from which the NCAA draws monthly remittances, although recent global developments particularly the Iran–Israel/USA crisis have placed significant financial strain on airline operations.
It recalled that the association had appealed to the Federal Government, through the Minister of Aviation and Aerospace Development, for a temporary suspension of statutory charges to ease cash flow pressures. While acknowledging the 30 per cent concession approved by Bola Ahmed Tinubu, AON said it is still seeking further engagement with the Presidency on additional relief measures.
Reiterating its position, the association argued that the NCAA should function strictly as a regulatory body, not a revenue-generating agency, stressing that it does not fund airline operations nor provide direct services to passengers.
AON also called on the Federal Government to amend the Civil Aviation Act to allow the NCAA collect applicable charges directly from passengers or other appropriate channels, rather than through airlines. The proposed change, it said, should take effect from June 1, 2026, to relieve operators of the financial and administrative burden of acting as collection agents.
Providing historical context, the association explained that the 5 per cent TSC was introduced over four decades ago under the administration of General Yakubu Gowon to support airport infrastructure at a time when budgetary provisions were inadequate. It noted that domestic carriers, including the then Nigeria Airways, were initially exempt from the charge.
The AON argued that the aviation landscape has since evolved significantly, with multiple agencies now in place including the Federal Airports Authority of Nigeria (FAAN) and the Nigerian Airspace Management Agency (NAMA)—each imposing separate charges on operators.
It warned that the cumulative effect of multiple taxes, fees, and levies – many applied to gross earnings rather than profits is placing unsustainable pressure on domestic airlines, especially in an industry with globally thin profit margins.
The association urged the Federal Government to urgently review the current framework to ensure the survival and growth of the aviation sector, describing it as critical to national economic development.
AON reaffirmed its commitment to constructive dialogue with government and industry stakeholders to build a more sustainable, growth-oriented aviation ecosystem.