NCAA Suspends “No Pay, No Service” Directive Issued To Airlines
The Nigeria Civil Aviation Authority (NCAA) says the previously communicated enforcement of the “no pay, no service” directive in respect of certain airlines with outstanding statutory remittances has been temporarily suspended.
A statement signed by NCAA says “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.
It is important to state clearly that this suspension does not represent a cancellation, waiver, or forgiveness of outstanding statutory financial obligations as such decision is beyond the purview of the Authority. It would be recalled that His Excellency, President Bola Ahmed Tinubu GCFR, in his magnanimity, already approved a 30% discount on such outstanding fees owed by domestic airlines to aviation agencies, including NCAA. This relief, as contained in a statement by the Honourable Minister of Aviation and Aerospace Development, is part of Federal Government’s broader efforts to cushion the impact of the high cost of Jet A1 fuel, stabilize 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 5% Ticket and Cargo Sales Charge is a statutory component of the aviation system in Nigeria required by the Civil Aviation Act, and embedded in the cost of air travel and cargo services. It must be emphasized 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, and must therefore not be treated as such.
These funds, after remitted, are not retained by a single institution; they are shared among the regulator (NCAA) 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 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.
NCAA’s decision is, therefore, predicated on maintaining a balance between regulatory enforcement and the need to ensure that the industry continues to function without avoidable disruption, while still upholding the principle that statutory charges already collected must be remitted for their intended purposes.”
