BY OLAPEJU OLUBI
The Nigeria Civil Aviation Authority (NCAA) has initiated high-level talks with the Airline Operators of Nigeria (AON) over the introduction of Advance Payment Guarantees (APGs) aimed at ensuring timely remittance of the statutory five per cent Ticket Sales Charge (TSC).
The engagement, held Monday, 2 February 2026, at NCAA’s Abuja headquarters, follows AON’s request for clarification on the requirement for airlines to provide bank-backed APGs.
The initiative forms part of NCAA’s broader mandate to protect funds collected from passengers and ensure their proper distribution across aviation agencies responsible for safety, security, and regulatory oversight.
Addressing airline representatives, NCAA Director-General, Captain Chris Najomo, explained that the Authority’s powers stem from the Civil Aviation Act (CAA) 2022 (as amended) to collect the five per cent TSC on a cost-recovery basis.
“The charge represents funds paid by passengers, held in trust by airlines, and subsequently remitted to NCAA for equitable distribution among key aviation agencies,” he said.
Captain Najomo highlighted concerns over persistent delays in remittance by some operators, noting that such lapses undermine the financial stability needed for effective regulation.
He clarified that the proposed APGs are designed to strengthen compliance, improve remittance timelines, and provide predictable funding, stressing that the measure is not intended to stifle airline operations.
Following extensive deliberations, the DGCA granted a 90-day deferment of the APG requirement to allow operators sufficient time to regularise outstanding remittances and align with the new compliance framework.
“Operators should take full advantage of the deferment window to settle obligations,” Captain Najomo said, “while NCAA remains committed to industry stability and ease of doing business, without compromising its legal mandate to protect public funds.”
Responding on behalf of AON, Captain Edward Boyo, CEO of Overland Airways, commended NCAA for the “open and constructive engagement” and assured that all Air Operator Certificate (AOC) holders would use the deferment period to meet financial obligations and comply fully with remittance requirements.
The meeting brought together key NCAA officials, including Captain Donald Spiff, Director of Operations, Licensing and Training Standards; Mrs Olayinka Babaoye-Iriobe, Director of Air Transport Regulation; Mr Olufemi Odukoya, Director of Finance and Accounts; and Barrister Mary Tufano-Eche, Director of Legal Services and Company Secretary.
With the APG framework, NCAA aims to create a more transparent, accountable, and predictable system for managing passenger funds—balancing regulatory enforcement with collaborative industry engagement to strengthen Nigeria’s civil aviation sector.
Olapeju is a journalist and aviation reporter.
