ABUJA, Nigeria (VOICE OF NAIJA) – The Nigeria Civil Aviation Authority has put on hold its “No-pay, No-service” enforcement directive earlier issued against domestic airlines over unpaid statutory remittances, in a move aimed at safeguarding stability in the aviation sector.
In a statement signed on Monday by the Director-General of the NCAA, Chris Najomo, the regulator said the suspension followed wide consultations within the industry and a review of current operational conditions affecting airlines.
The development comes amid concerns from operators and stakeholders that strict enforcement of the directive could worsen the financial pressure already facing airlines due to high aviation fuel costs, foreign exchange volatility and rising operational expenses.
However, the NCAA clarified that the suspension does not cancel or forgive any outstanding debts owed by airlines to the authority or other aviation agencies.
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.”
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“It is important to state clearly that this suspension does not represent a cancellation, waiver, or forgiveness of outstanding statutory financial obligations, as such a decision is beyond the purview of the Authority.”
The NCAA also referenced an earlier approval by President Bola Ahmed Tinubu granting a 30 per cent discount on outstanding fees owed by domestic airlines to aviation agencies as part of efforts to ease pressure from high Jet A1 fuel costs.
According to the authority, the intervention is part of broader government measures to stabilise airline operations and prevent disruptions in the sector.
It added that all affected airlines remain responsible for settling their statutory obligations, noting that engagements will continue on an individual basis to ensure recovery without undermining industry stability.
The statement further read, “This relief, as contained in a statement by the Honourable Minister of Aviation and Aerospace Development, is part of the Federal Government’s broader efforts to cushion the impact of the high cost of Jet A1 fuel, stabilise 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.
The regulator explained that the 5 per cent Ticket Sales Charge and Cargo Sales Charge is a statutory levy under the Civil Aviation Act, embedded in ticket and cargo pricing structures.
It stressed that the charge is collected by airlines on behalf of the aviation ecosystem and remitted to the NCAA for designated purposes, warning that it should not be treated as airline revenue.
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Najomo emphasised, “It must be emphasised 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.”
The NCAA described the suspension as a calibrated measure designed to balance regulatory enforcement with the need to maintain stability in the aviation industry.
“The temporary suspension of the ‘no pay, no service’ measure is a calibrated step aimed at maintaining operational stability within the sector while continued engagement is pursued toward full settlement of outstanding obligations,” the NCAA stated.