NCAA suspends ‘no pay, no service’ enforcement in aviation sector

The Nigerian Civil Aviation Authority (NCAA) has suspended the implementation of its “no fee, no service” policy to airlines.

The NCAA issued a directive against airlines with unpaid statutory remittances.’

The agency in an internal memo dated May 22, directed its directorates to suspend services to 11 domestic airlines.

The affected airlines are Air Peace Limited, Ibom Air, Arik Air Ltd., United Nigeria Airlines, Umza Air, NG Eagle, Max Air Limited, Caverton Helicopters, Overland Airways, Rano Air and ValueJet.

NCAA Director General, Captain Chris Najomo, announced the suspension of enforcement of the policy in a statement on Sunday in Lagos.

Najomo said the decision was taken after extensive consultations and a review of existing challenges affecting airline operations, particularly increasing aviation fuel costs.

According to him, the suspension should not be interpreted as cancellation, release or forgiveness of the airline’s financial obligations.

He emphasized that affected operators remain fully responsible for resolving all debts according to the law.

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The NCAA boss recalled that President Bola Tinubu had earlier approved a 30 percent discount on fees owed by domestic airlines to aviation institutions, including the agency.

He added that the discount was part of measures aimed at cushioning the impact of the Jet A1 fuel price hike on operators.

The intervention, according to Najomo, is part of the Federal Government’s broader efforts to support airline operations and maintain stability in the aviation sector.

He added that the NCAA will continue to engage individual airlines through structured arrangements to ensure debt recovery while balancing compliance requirements with industry sustainability.

Najomo explained that the Ticket and Cargo Sales Fee of five percent is a mandatory component stipulated in the Civil Aviation Law and is included in the passenger and cargo service fees.

“Ticket and Cargo Sales Charges are a legal component of the aviation system in Nigeria required by the Civil Aviation Act, and are included in the cost of air travel and cargo services.

“It must be emphasized that these fees are collected upon sale of tickets and cargo by airlines on behalf of the aviation ecosystem, and are expected to be remitted to the NCAA for specified purposes.

“It is not part of the operating profits or revenue of the collecting airline, and therefore should not be treated as such.

“These funds, once deposited, are not kept by just one institution; they are shared between regulators (NCAA) and major aviation service providers.

“They carry out special responsibilities that collectively maintain flight operations that are safe, efficient and comply with international standards,” said Najomo.

He noted that these fees are collected by airlines at the time of ticket and cargo sales on behalf of the aviation ecosystem and are expected to be remitted to the regulator.