The Nigerian Civil Aviation Authority (NCAA) has suspended its “no pay, no service” policy previously imposed on airlines owing statutory fees, citing the need to maintain stability in the aviation sector.
The regulatory body explained that the decision came after reviewing the current challenges facing the industry, especially the soaring cost of aviation fuel and its impact on airline operations. The suspension applies to domestic carriers that were earlier listed for failing to remit required charges.
The NCAA, however, clarified that the suspension does not erase the debts owed by the airlines, stressing that operators are still obligated to settle all outstanding payments.
In a statement, the Director-General of the NCAA, Chris Najomo, disclosed that President Bola Tinubu had approved a 30 per cent reduction in outstanding debts owed by domestic airlines to aviation agencies.
Najomo said the relief measure, announced earlier by the Ministry of Aviation and Aerospace Development, forms part of the Federal Government’s efforts to ease the burden caused by the high cost of Jet A1 fuel, support airline operations, and stabilise the aviation industry.
He added that the Authority would continue engaging airlines on repayment arrangements while allowing them to maintain flight operations.
The NCAA boss also explained that the five per cent Ticket and Cargo Sales Charge is a statutory levy collected by airlines on behalf of the aviation sector during ticket and cargo transactions.
According to him, the charge does not belong to the airlines as profit or operational revenue and should not be treated as such.
The Authority noted that the funds are distributed among aviation agencies and service providers responsible for regulation, safety oversight, and operational support within the sector.
Najomo further stated that the NCAA relies heavily on these remittances to fund its activities, as it does not receive direct federal government allocations for its routine operations.
He said the temporary suspension of the sanctions is intended to keep the aviation sector functioning smoothly while discussions continue on how airlines will clear their debts.
Airlines initially affected by the sanctions include Air Peace, Ibom Air, Arik Air, United Nigeria Airlines, Max Air and ValueJet, among other domestic operators.
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