The Nigeria Civil Aviation Authority (NCAA) has granted airline operators a 90-day grace period on the implementation of Advance Payment Guarantees (APGs) for the remittance of the statutory five per cent Ticket Sales Charge (TSC), following consultations with the Airline Operators of Nigeria (AON).
The decision was reached at a stakeholder engagement held on Monday, 2 February 2026, at the NCAA’s Corporate Headquarters in Abuja. The meeting was convened after the AON formally sought clarification on the Authority’s requirement for airlines to provide bank-backed APGs as part of measures to address delays in remitting funds collected from passengers.
Addressing airline executives at the meeting, the Director-General of Civil Aviation (DGCA), Captain Chris Najomo, emphasised that the NCAA is mandated under the Civil Aviation Act (CAA) 2022 (as amended) to collect the five per cent Ticket Sales Charge on a cost-recovery basis.
He explained that the charge constitutes passengers’ funds, which airlines merely hold in trust before remitting them to the Authority for distribution among critical aviation agencies within the Nigerian aviation ecosystem.
Captain Najomo noted that while many operators have made efforts to comply, the Authority remains concerned about recurring delays and arrears by some airlines, which have negatively affected the predictability of funding for regulatory and oversight activities.
According to him, the proposed introduction of Advance Payment Guarantees is designed to strengthen financial discipline, enhance transparency and ensure that remittances are made in a timely and consistent manner.
“The objective is to protect passengers’ funds and ensure that the aviation sector has the stable funding required for effective regulation, safety oversight and service delivery,” the DGCA said, adding that the policy is not punitive but corrective.
Following robust discussions with AON representatives, the DGCA approved a 90-day deferment of the APG requirement to enable airline operators to regularise outstanding obligations and adjust to the new compliance framework.
He encouraged operators to utilise the window responsibly and reaffirmed the NCAA’s resolve to balance regulatory enforcement with industry sustainability and ease of doing business.
Speaking on behalf of the Airline Operators of Nigeria, the Chief Executive Officer of Overland Airways, Captain Edward Boyo, welcomed the engagement and described it as constructive.
He expressed appreciation to the Authority for granting the deferment and assured that all Air Operator Certificate (AOC) holders would work collectively to meet their financial commitments within the stipulated period.
He added that continued dialogue between regulators and operators remains critical to sustaining a stable and efficient aviation sector.
Senior officials present at the meeting included the Director of Operations, Licensing and Training Standards, Captain Donald Spiff; the Director of Air Transport Regulation, Mrs Olayinka Babaoye-Iriobe; the Director of Finance and Accounts, Mr Olufemi Odukoya; and the Director of Legal Services and Company Secretary, Barrister Mary Tufano-Eche.
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