BY OLAPEJU OLUBI
The Airline Operators of Nigeria (AON) has strongly refuted claims that its member airlines owe the Nigeria Civil Aviation Authority (NCAA) any Cost Recovery Charges, insisting that all regulatory service fees are fully prepaid and that airlines are being wrongly portrayed as debtors.
The association also maintained that the NCAA “should not function as a revenue generating agency of government,” warning that recent media publications credited to the regulator were misleading and outside the established regulatory framework.
According to AON, the narrative suggesting indebtedness is “not only misleading but represents a worrisome and unacceptable attempt to use the media to regulate operators outside the established regulatory framework,” adding that it “condemns this in the strongest possible terms.”
The operators stressed that all NCAA cost recovery services are paid for in advance.
“For clarity, the NCAA issues an invoice for every regulatory service it provides… operators are then required to settle all such invoices in advance, and compliance is strictly observed before the NCAA renders any regulatory service,” the AON said.
It added that “no domestic airline in Nigeria receives NCAA regulatory services without first making the full payment of invoices issued,” describing any suggestion of outstanding regulatory service debts as “factually inaccurate.”
The AON clarified that what the NCAA describes as outstanding charges relates solely to the 5% Ticket Sales Charge (TSC), which it described as a tax imposed on passengers rather than a regulatory service fee.
“This is entirely different from regulatory service fees,” the association noted, arguing that the levy is “a tax imposed by the NCAA on passengers for no services rendered to passengers and not in consonance with the dictates of international aviation.”
The group further explained that some airlines operate remittance accounts for monthly deductions by the NCAA, but said these arrangements have been strained by recent global economic shocks, including the Iran–Israel–US conflict and rising jet fuel costs.
AON said it had already approached the Federal Government through the Minister of Aviation and Aerospace Development, seeking a temporary suspension of statutory charges to ease liquidity pressures in the sector.
It said President Bola Ahmed Tinubu approved a 30% concession as an interim measure, while further requests for relief remain under consideration.
“We had appealed for a meeting with Mr. President to discuss further reliefs, a request that is yet to be granted,” the association stated.
Reiterating its position, AON insisted that the NCAA is a regulator, not a revenue-generating institution.
“The NCAA is a regulatory body, not a revenue-generating agency. The NCAA does not fund any aspect of our businesses or render any direct service to passengers,” it said.
The association called on the Federal Government to urgently amend the Civil Aviation Act to allow aviation agencies to directly collect applicable fees from passengers or relevant parties, rather than routing such payments through airlines. It proposed that the reform take effect from June 1, 2026.
AON argued that the current system imposes additional financial strain on airlines, which also bear bank transfer charges and transaction costs while remitting funds to government agencies.
Historical context of the 5% TSC.
The association traced the origin of the 5% TSC to over 45 years ago under the administration of General Yakubu Gowon, noting that it was introduced by the then Federal Civil Aviation Authority (FCAA) to fund airport maintenance when Nigeria had limited aviation infrastructure resources.
At the time, Nigeria Airways, the only domestic carrier, was exempt, while foreign airlines bore the charge.
AON noted that the aviation ecosystem has since evolved, with the FCAA transitioning into the NCAA, NAA, and NIMET, and the NAA later becoming FAAN and NAMA.
It added that deregulation in 1982 opened the sector to private operators, who now form the backbone of the industry.
However, it argued that despite this evolution, multiple layers of taxes, fees, and levies have been imposed on domestic airlines, worsening operating conditions.
The association warned that the cumulative financial pressure from agencies such as NAMA, FAAN, and NCAA is becoming “adverse, burdensome and excruciating,” especially amid global economic shocks.
It noted that aviation globally operates on thin margins of about 1.5% to 2.5%, arguing that Nigeria’s multiple charges contradict international best practice, which views aviation as a strategic, cost-recovery sector.
AON concluded by reaffirming its commitment to dialogue with government and stakeholders, stressing the need for policies that support industry survival and broader economic growth.
“The aviation sector is crucial to the economy as a catalyst and enabler for economic growth,” it said, adding that it remains committed to “constructive engagement to achieve a growth-oriented sector.”
Olapeju is a journalist and aviation reporter.
