NCAA Backs Down On ‘No Pay, No Service’ Directive Against Indebted Airlines

The Nigeria Civil Aviation Authority (NCAA) has suspended the enforcement of its proposed “no pay, no service” directive against domestic airlines owing statutory charges.

According to the Director-General of Civil Aviation (DGCA), Capt. Chris Najomo, said the decision followed extensive consultations with stakeholders and a review of prevailing conditions in the industry, particularly the soaring cost of Jet A1 aviation fuel.

Daily Trust reports that the authority had in a May 22 memo placed no fewer than 11 airlines on a no pay, no service list following mounting debts.

Most of the domestic airlines including Air Peace, Ibom Air, Overland, Arik Air, United Nigeria Airlines, Max Air, Caverton, among others are on the list.

It was learnt that the airlines immediately initiated talks with the NCAA which explained while the implementation was put on hold.

The NCAA in the DG’s statement however, clarified that the suspension did not amount to a waiver, cancellation or forgiveness of outstanding debts owed by airlines.

According to the authority, all affected carriers remain fully responsible for the settlement of their statutory obligations, while the NCAA would continue structured engagements with operators to ensure compliance without disrupting flight operations.

The authority recalled that President Bola Ahmed Tinubu had earlier approved a 30 per cent discount on outstanding charges owed by domestic airlines to aviation agencies as part of measures to cushion the impact of high fuel costs and stabilise the sector.

The NCAA also defended the controversial five per cent Ticket and Cargo Sales Charge, describing it as a statutory levy embedded in ticket and cargo sales as provided under the Civil Aviation Act.

It explained that the charge is collected by airlines on behalf of the aviation ecosystem and is expected to be remitted to the regulator and other aviation service providers responsible for maintaining safe and efficient operations.

“The charge is not part of airline revenue or operating profit and should not be treated as such,” the authority stated.

The regulator further noted that it operates on a cost-recovery basis and does not receive direct federal government funding for its daily regulatory activities, making statutory remittances critical to sustaining oversight and safety functions.

The NCAA said the temporary suspension of the enforcement measure was a calibrated step aimed at balancing regulatory enforcement with the need to avoid disruption in the aviation industry.

The authority added that while it remains committed to ensuring full recovery of outstanding debts, it would pursue a framework that supports both compliance and operational sustainability within the sector. (Daily trust)