…Links suspension to extensive consultations, review of current operating realities,
Barely four days after the Nigeria Civil Aviation Authority (NCAA) issued a ” No Pay, No Service” directives against 11 airlines with outstanding statutory remittance, the regulatory body has suspended the enforcement.
Recalled that the NCAA in an internal memo dated May 22,2026 issued a directive that services should not be rendered to the following domestic airlines.
The airlines are : Air Peace Limited, Ibom Air Limited, Arik Air Limited, United Nigeria Airlines, Umza Air, NG Eagle, Max Air Limited, Caverton Helicopters, Overland Airways, Rano Air and ValueJet.
But in a twist, the regulatory body today said in a statement that it has suspended the operation of the directive
NCAA informed stakeholders in the aviation industry that the previously communicated enforcement of the “no pay, no service” directive in respect of certain airlines with outstanding statutory remittances has been temporarily suspended.
The NCAA in the statement made available to Aviation journalists today, Monday, said the decision to suspend the directive follows extensive consultations within the sector and a careful review of current operating realities, particularly the rising cost of aviation fuel and its impact on airline operations and overall industry stability.
NCAA, however clarified that this suspension does not represent a cancellation, waiver, or forgiveness of outstanding statutory financial obligations as such decision is beyond the purview of the a authority.
Recall that President Bola Tinubu, had approved a 30 per cent discount on such outstanding fees owed by domestic airlines to aviation agencies, including NCAA.
This relief, the statement said is as contained in a statement by the Minister of Aviation and Aerospace Development, Festus Keyamo, is part of Federal Government’s broader efforts to cushion the impact of the high cost of Jet A1 fuel, stabilise the aviation industry and safeguard airline operations.
“All affected operators, therefore, remain fully responsible for the settlement of their statutory debts, and the NCAA will pursue structured engagements with airlines individually, to ensure recovery in a manner that supports both compliance and sector stability.
“The 5% Ticket and Cargo Sales Charge is a statutory component of the aviation system in Nigeria required by the Civil Aviation Act, and embedded in the cost of air travel and cargo services. It must be emphasised that this charge is collected at the point of ticket and cargo sales by airlines on behalf of the aviation ecosystem, and is expected to be remitted to the NCAA for defined purposes. It is not a part of operating profit or revenue for the collecting airline, and must therefore not be treated as such”, the statement 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,” NCAA added.
NCAA noted that 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.
NCAA’s decision, the statement said, is therefore, predicated on maintaining a balance between regulatory enforcement and the need to ensure that the industry continues to function without avoidable disruption, while still upholding the principle that statutory charges already collected must be remitted for their intended purposes.
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