NCAA Halts “No Pay, No Service” Policy While Airlines Pay Outstanding Debts

Kasim Sumaina in Abuja 

The Nigeria Civil Aviation Authority (NCAA) has announced that it will temporarily suspend the enforcement of its “no pay, no service” directive against airlines that have unpaid statutory remittances. The decision comes after consultations and in response to the rising cost of aviation fuel, which is affecting airline operators across the country.

In a statement released in Abuja on Monday, the Authority clarified that the suspension does not waive, cancel, or forgive the debts owed by affected airlines. Operators remain fully responsible for settling all outstanding statutory obligations.

The NCAA said it will continue structured engagements with individual airlines to recover debts in a way that promotes compliance while maintaining operational stability in the sector.

President Bola Tinubu had previously approved a 30 percent discount on the outstanding fees owed by domestic airlines to aviation agencies, including the NCAA, as part of measures designed to cushion the impact of high Jet A1 fuel costs and stabilize the aviation industry.

The Authority also noted that the 5 percent Ticket and Cargo Sales Charge is a statutory requirement under the Civil Aviation Act and is built into the cost of air travel and cargo services in Nigeria.

Airlines collect this charge at the point of ticket and cargo sales on behalf of the aviation ecosystem and are expected to remit it accordingly. The funds are not considered airline revenue or operating profit.

According to the NCAA, “The remitted funds are shared among the regulator and other key aviation service providers responsible for maintaining safe, efficient and internationally compliant aviation operations.”

The Authority operates on a cost‑recovery basis and does not receive direct Federal Government funding for its routine regulatory responsibilities, making statutory charges essential for sustaining oversight functions.

The NCAA emphasized that the temporary suspension of the enforcement measure has been carefully calibrated to avoid disruption in the aviation industry while ensuring that airlines ultimately meet their financial obligations to the sector.