NCAA Suspends “No Pay, No Service” Directive Over Airlines’ Outstanding Debts
Oru Leonard
The Nigeria Civil Aviation Authority has announced the temporary suspension of its planned “No Pay, No Service” enforcement directive against domestic airlines owing outstanding statutory remittances, citing the need to maintain stability within the aviation sector amid rising operational costs.
In a statement issued on behalf of the Authority, the NCAA said the decision followed extensive consultations with stakeholders and a review of prevailing challenges facing airline operators, particularly the soaring cost of Jet A1 aviation fuel and its effect on airline sustainability.
The Authority, however, clarified that the suspension does not amount to a waiver, cancellation, or forgiveness of the debts owed by airlines. According to the NCAA, all affected operators remain fully liable for the settlement of outstanding statutory obligations.
The regulator recalled that President Bola Ahmed Tinubu had earlier approved a 30 per cent discount on outstanding fees owed by domestic airlines to aviation agencies as part of broader Federal Government measures aimed at cushioning the impact of high fuel costs and stabilising the aviation industry.
The NCAA stated that it would continue structured engagements with individual airlines to ensure recovery of the debts in a manner that balances compliance with operational stability across the sector.
The Authority also clarified the nature of the 5 per cent Ticket and Cargo Sales Charge, describing it as a statutory levy established under the Civil Aviation Act and embedded in the cost of air travel and cargo services in Nigeria.
According to the statement, airlines merely collect the charge on behalf of the aviation ecosystem at the point of ticket and cargo sales and are required to remit the funds to the NCAA for designated purposes.
“It is not part of the operating profit or revenue of the collecting airline and must therefore not be treated as such,” the Authority stressed.
The NCAA further explained that the remitted funds are distributed among aviation regulatory and service institutions responsible for maintaining safe, efficient, and internationally compliant aviation operations.
The Authority noted that it operates on a cost-recovery basis and does not receive direct Federal Government funding for its routine regulatory responsibilities, making statutory charges critical for sustaining oversight functions.
The NCAA maintained that the temporary suspension of the enforcement measure was a calibrated decision intended to prevent avoidable disruption in the aviation sector while preserving the principle that statutory charges collected by airlines must be remitted appropriately.
Recall that on 22nd May, 2026 The Nigerian Civil Aviation Authority (NCAA), directed all departments to suspend services to 11 domestic airlines over unpaid financial obligations. The “no-pay-no-service” directive, issued through an internal memo signed by Olufemi Odukoya, affects major carriers including Air Peace, Ibom Air, Arik Air, United Nigeria Airlines, Max Air, and several others pending financial clearance.
