The Nigerian Civil Aviation Authority (NCAA)
The Nigeria Civil Aviation Authority (NCAA) has suspended its planned enforcement of the controversial ‘No Pay, No Service’ directive earlier imposed on 11 operating airlines over their failure to remit to the agency the statutory 5 per cent Ticket Sales Charge (TSC) and Cargo Sales Charge (CSC).
A source close to the NCAA confided in The Guardian that the total debts of the airlines is about N12 billion owed the aviation agencies in recent years.
The 5 per cent TSC is collected by the NCAA on behalf of four other agencies and it is shared as NCAA, 56 per cent; Nigerian Airspace Management Agency (NAMA), 22 per cent; Nigerian Meteorological Agency (Nimet), 9 per cent and Nigerian Safety Investigation Bureau (NSIB) with 6 per cent.
A statement by the Director-General Civil Aviation (DGCA), Chris Najomo on Sunday night, said that the temporary suspension of the directive by the NCAA, followed extensive consultations with stakeholders and a review of prevailing operational realities in the aviation industry, particularly the rising cost of Jet A1 fuel and the need to maintain stability in the sector.
Najomo, however, clarified that the suspension should not be interpreted as a waiver or cancellation of the airlines’ outstanding debts.
According to him, all affected airlines remain fully responsible for settling their statutory obligations, stressing that the authority would continue structured engagements with the operators to ensure recovery of the debts without disrupting airline operations.
He expressed that President Bola Tinubu had earlier approved a 30 per cent discount on outstanding statutory fees owed by domestic airlines to aviation agencies as part of measures to cushion the effect of high aviation fuel prices and stabilise the industry.
The agency further explained that the 5 per cent TSC and CSC was a statutory levy established under the Civil Aviation Act and collected by airlines on behalf of the aviation ecosystem at the point of ticket and cargo sales.
He pointed out that the charge did not constitute operating revenue or profit for airlines and must therefore be remitted accordingly.
Besides, NCAA said it operates largely on a cost-recovery basis and does not receive direct Federal Government funding for its routine regulatory activities, making statutory remittances important to sustaining oversight and safety functions.
He said: “These funds, after remitted, are not retained by a single institution; they are shared among the regulator (NCAA) and key aviation service providers, which perform specific responsibilities that collectively sustain safe, efficient, and internationally compliant aviation operations.
“Within this structure, the Nigeria Civil Aviation Authority operates on a cost recovery basis and does not receive direct funding from the Federal Government for its day-to-day regulatory activities. The funds derived from statutory charges are therefore not only essential, but critical, to sustain oversight functions.
“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 NCAA had over the weekend, barred 11 Nigerian airlines, including Air Peace, Ibom Air and ValueJet, from accessing regulatory services.
Also affected by the sanction are Arik Air, United Nigeria Airlines, Umza Air, NG Eagle, Max Air, Caverton Helicopters, Overland Airways and Rano Air.
The internal memo, dated May 22, 2026, issued by its Director, Finance and Accounts, Olufemi Odukoya was copied different directorates – Directorate of Operations, Licensing and Training Standards (DOLTS), Directorate of Airworthiness Standards (DAWS), Directorate of Aerodrome and Airspace Standards (DAAS), Directorate of Air Transport Regulation (DATR), Directorate of Legal Services/Company Secretariat (DLS/CS), Regional Managers and Regional Accountants and obtained by The Guardian, said the above-mentioned airlines should not be rendered services without financial clearance from the Director of Finance & Accounts.