BY OLAPEJU OLUBI
The Nigeria Civil Aviation Authority (NCAA) has temporarily suspended its controversial “no pay, no service” directive against indebted domestic airlines, citing rising operational pressures and the need to stabilise the aviation sector.
This was contained in a statement by the Director General, Captain Chris Najomo.
The regulator said the decision followed extensive consultations with industry stakeholders and a review of prevailing conditions, particularly the spike in aviation fuel prices, which has significantly strained airline operations across the country.
Despite the suspension, the NCAA was quick to clarify that the move does not amount to a waiver or cancellation of outstanding statutory obligations owed by airlines.
“The suspension does not represent forgiveness of debts,” the Authority stated, stressing that it lacks the legal powers to write off such liabilities.
The development comes against the backdrop of earlier intervention by Bola Ahmed Tinubu, who approved a 30 per cent discount on debts owed by domestic carriers to aviation agencies, as part of broader efforts to cushion the impact of high Jet A1 fuel costs and keep airlines afloat.
The NCAA said all affected operators remain fully responsible for settling their outstanding obligations, adding that it will engage airlines individually under a structured repayment framework designed to ensure compliance without crippling operations.
At the heart of the dispute is the 5 per cent Ticket and Cargo Sales Charge, a statutory levy embedded in ticket prices and cargo services.
The Authority emphasised that the charge is collected by airlines on behalf of the aviation system and must be remitted accordingly.
“It is not part of airline revenue or profit and must not be treated as such,” the NCAA stressed.
According to the regulator, the funds are distributed across multiple aviation agencies, including the NCAA and other critical service providers, to support safety oversight, regulatory compliance, and the smooth functioning of the sector.
The Authority also underscored its financial structure, noting that it operates on a cost-recovery basis and does not receive direct funding from the Federal Government for its day-to-day regulatory responsibilities. As such, timely remittance of statutory charges remains vital to sustaining its operations.
Industry observers say the suspension reflects a delicate balancing act by the regulator, easing pressure on struggling airlines while maintaining enforcement of financial obligations critical to the sector’s survival.
The NCAA maintained that the temporary measure is a calibrated step aimed at preventing further disruption in the aviation industry, even as it continues to push for full recovery of outstanding debts.
Olapeju is a journalist and aviation reporter.
