The Nigeria Civil Aviation Authority (NCAA) has announced the temporary suspension of its enforcement of the “no pay, no service” directive earlier imposed on domestic airlines with outstanding statutory obligations.
The aviation regulator said the decision was taken after broad consultations within the industry and a careful assessment of the current challenges facing airline operators, especially the persistent increase in aviation fuel costs and its effect on operational sustainability.
The NCAA in a statement issued and signed by the Director General, Capt. Chris Najomo, emphasised that the suspension was only temporary and should not be misconstrued as a waiver or cancellation of debts owed by airlines.
According to the NCAA, all affected carriers are still required to settle their outstanding statutory remittances, while the Authority would continue discussions with operators on modalities for repayment without destabilising the aviation sector.
The statement noted that the decision was designed to strike a balance between enforcing regulatory compliance and maintaining uninterrupted airline operations across the country.
“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,” the statement read.
The regulator recalled that President Bola Ahmed Tinubu had earlier approved a 30 per cent discount on outstanding statutory charges owed by domestic airlines to aviation agencies, including the NCAA.
The concession, according to the Authority, was part of efforts by the Federal Government to ease the burden imposed on operators by the soaring cost of Jet A1 fuel and other operational expenses threatening the viability of domestic aviation.
The NCAA further clarified that the five per cent Ticket and Cargo Sales Charge remains a statutory levy established under the Civil Aviation Act and embedded in the cost of air tickets and cargo transactions.
It explained that airlines merely collect the charge on behalf of the aviation industry and are expected to remit the proceeds to the appropriate authorities.
The Authority stressed that the funds should not be regarded as airline income or operational revenue, insisting that failure to remit such charges undermines the sustainability of critical aviation services.
According to the statement, the proceeds from the statutory charges are distributed among aviation regulatory and service agencies responsible for maintaining safety oversight, navigation services, security, and compliance with international aviation standards.
The NCAA also pointed out that it operates largely on a cost-recovery basis and does not depend on direct Federal Government allocations for its routine regulatory functions.
As a result, the Authority said statutory remittances remain vital for the effective discharge of its oversight responsibilities and for sustaining safe and efficient air transport operations in Nigeria.
Industry observers believe the suspension of the directive may provide temporary relief for struggling domestic carriers already grappling with foreign exchange challenges, rising maintenance costs, multiple taxation, and expensive aviation fuel.
However, the NCAA maintained that it would continue to enforce compliance through structured engagements with operators to ensure that all outstanding obligations are eventually settled.
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