NCAA Suspends ‘No Pay, No Service’ Order Against Airlines Over Industry Challenges

The Nigeria Civil Aviation Authority (NCAA) has temporarily suspended its earlier “no pay, no service” directive issued to domestic airlines owing statutory remittances, citing ongoing stakeholder consultations and operational difficulties within the aviation sector.

In a statement released by the Authority, the NCAA explained that the decision followed a reassessment of current industry realities, especially the rising cost of Jet A1 aviation fuel, which continues to place heavy financial strain on local airlines.

The regulator noted that the suspension was introduced as a temporary measure aimed at preserving operational stability across the sector while discussions with airline operators continue.

However, the Authority clarified that the suspension should not be interpreted as a cancellation, waiver, or forgiveness of the debts owed by the affected airlines, stressing that such powers are outside its regulatory responsibilities.

The NCAA also recalled that President Bola Tinubu had earlier approved a 30 per cent reduction on outstanding statutory charges owed by domestic carriers to aviation agencies as part of government efforts to ease the financial burden on operators and support the industry.

According to the Authority, airlines are still expected to fulfil their financial obligations, adding that individual repayment arrangements would be discussed with operators to ensure compliance without disrupting flight operations.

The regulator further explained that the five per cent Ticket and Cargo Sales Charge remains a statutory levy established under the Civil Aviation Act and is already included in the cost of tickets and cargo services paid by passengers and customers.

It stated that airlines merely collect the charge on behalf of the aviation system and are required to remit the funds accordingly, emphasising that the money does not belong to the airlines and should not be treated as part of their revenue.

The NCAA added that the funds generated from the charge are shared among critical aviation agencies and service providers responsible for maintaining safety, efficiency, and regulatory compliance within Nigeria’s aviation industry.

The Authority also pointed out that it operates largely on a cost-recovery model and does not rely on direct federal government funding for most of its routine regulatory activities, making prompt remittance of statutory charges essential for effective oversight.

While suspending the enforcement directive, the NCAA maintained that all collected statutory funds must still be remitted appropriately and reaffirmed its commitment to balancing strict regulatory enforcement with the sustainability of the aviation sector.