NCAA Suspends ‘No Pay, No Service’ Sanctions Against 11 Airlines

The Nigerian Civil Aviation Authority (NCAA) has temporarily suspended its “no pay, no service” enforcement order earlier issued against 11 domestic airlines over unpaid statutory remittances.

The Director-General of Civil Aviation, Capt. Chris Najomo, disclosed this in a statement on Monday, explaining that the decision followed extensive consultations and a review of current challenges facing airline operators, particularly the rising cost of aviation fuel.

According to Najomo, the suspension was introduced to maintain operational stability within the aviation sector and prevent disruptions to airline services.

He, however, stressed that the suspension does not amount to a waiver, cancellation, or forgiveness of the debts owed by the affected airlines, noting that the authority lacks the powers to cancel such obligations.

The airlines affected by the earlier directive include Air Peace, Ibom Air, Arik Air, United Nigeria Airlines, Umza Air, NG Eagle, Max Air, Caverton Helicopters, Overland Airways, Rano Air, and ValueJet.

The NCAA had previously directed its various departments to withdraw services from the airlines due to their failure to remit statutory charges collected on behalf of the aviation regulatory system.

Najomo noted that President Bola Tinubu had already approved a 30 per cent discount on outstanding fees owed by domestic airlines to aviation agencies as part of measures aimed at cushioning the effect of high Jet A1 fuel prices and stabilising the aviation industry.

“The suspension does not represent a cancellation, waiver, or forgiveness of outstanding statutory financial obligations,” the statement said.

The NCAA further explained that the five per cent Ticket and Cargo Sales Charge is a statutory levy collected by airlines at the point of ticket and cargo sales on behalf of the aviation sector and must be remitted accordingly.

The authority stated that the funds are shared among aviation regulatory and service agencies responsible for ensuring safe, efficient, and internationally compliant operations within the sector.

Najomo also emphasised that the NCAA operates on a cost-recovery basis and does not receive direct federal government funding for its daily regulatory activities, making statutory remittances critical to its oversight functions.

He added that the authority would continue structured engagements with the affected airlines to ensure gradual repayment of outstanding obligations while sustaining stability in the aviation industry.