The Airline Operators of Nigeria has strongly denied allegations that domestic airlines are indebted to the Nigeria Civil Aviation Authority over regulatory charges, insisting that all services rendered by the aviation regulator are fully paid for in advance.
In a statement issued in response to recent media reports attributed to the NCAA, the airline body described claims that operators owed the agency for services rendered as “misleading” and an attempt to regulate airlines through media pressure rather than established regulatory procedures.
According to the AON, every regulatory service provided by the NCAA – including crew licence validations, aircraft inspections and documentation renewals – is invoiced and paid for before any service is delivered.
The association stressed that no domestic airline receives NCAA regulatory services without first settling all invoices issued by the agency, noting that the long-standing “cash-before-service” arrangement remains firmly in place across the industry.
The AON explained that what the NCAA described as “outstanding charges” relates only to the five per cent Ticket Sales Charge (TSC), which it said is different from regulatory service fees.
The association argued that the charge is a tax imposed on passengers despite no direct services being rendered to them by the NCAA.
The airline operators further disclosed that several member airlines maintain dedicated accounts from which the NCAA withdraws monthly remittances.
However, the association said worsening financial pressures on airlines, triggered partly by rising global aviation costs linked to the Iran-Israel/United States conflict, had affected the arrangement.
It revealed that the body had formally appealed to the Federal Government through the office of the Minister of Aviation and Aerospace Development for a temporary suspension of statutory charges to help airlines manage cash flow challenges arising from escalating Jet A1 fuel prices.
According to the AON, President Bola Ahmed Tinubu approved a 30 per cent concession as an interim measure while the government considers other requests made by operators.
While commending the President for the intervention, the association said it had also sought a meeting with him to discuss additional relief measures for domestic carriers.
The AON maintained that the NCAA is strictly a regulatory institution and should not function as a revenue-generating agency of government.
It argued that airlines should no longer be compelled to collect statutory charges on behalf of the regulator, urging the Federal Government to amend the Civil Aviation Act to allow the NCAA collect any approved fees directly from passengers or other appropriate channels beginning from June 1, 2026.
According to the association, domestic airlines currently bear banking transfer charges and other transaction costs involved in remitting the funds to the NCAA.
The body also traced the origin of the controversial five per cent Ticket Sales Charge to more than 45 years ago during the administration of General Yakubu Gowon under the defunct Federal Civil Aviation Authority.
The association stated that the charge was originally introduced to support airport maintenance after the Federal Government built airports across the then 12 states of the federation.
It further noted that at the time, only foreign airlines paid the charge, while Nigeria Airways was exempted.
The AON argued that despite the evolution of aviation agencies into bodies such as the Federal Airports Authority of Nigeria, Nigerian Airspace Management Agency and other aviation institutions, domestic airlines continue to face multiple taxes, levies and charges imposed by various agencies.
The association alleged that the 5 per cent TSC was later inserted into legislation by the NCAA despite opposition from airlines and other industry stakeholders.
Describing the levy as an ad valorem tax imposed on gross earnings rather than profits, the AON warned that the burden had become unsustainable, especially in an industry where global profit margins average between 1.5 and 2.5 per cent.
The association said the cumulative effect of multiple charges imposed by aviation agencies and statutory bodies had become “adverse, burdensome and excruciating,” particularly amid global economic shocks affecting the aviation sector.
It called on the Federal Government to urgently implement deliberate policy reforms aimed at preserving the aviation industry, which it described as a critical driver of economic growth and national development.
The AON, however, reaffirmed its commitment to continued engagement with the government and other stakeholders in pursuit of a more sustainable and growth-oriented aviation sector in Nigeria.
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