Politics

JUST IN: NCAA Suspends Debt Recovery Measures Against Domestic Airlines

The Nigeria Civil Aviation Authority has temporarily suspended its strict “No-pay, No-service” enforcement directive against domestic airlines.

The decision affects airlines with outstanding statutory remittances and is aimed at easing pressure on operators while maintaining stability in Nigeria’s aviation sector.

Politics Nigeria reports that the development was announced by the Director-General of the Nigeria Civil Aviation Authority, Chris Najomo, in a statement issued on Monday.

The authority said the move followed wide consultations within the aviation industry and a review of current economic and operational challenges affecting airlines.

The suspension comes at a time when domestic carriers are grappling with severe financial pressure. Rising aviation fuel costs, foreign exchange volatility, and increased maintenance expenses have continued to strain operations across the sector.

Stakeholders had warned that immediate strict enforcement of debt recovery measures could further destabilise airline services and possibly lead to flight disruptions.

According to the NCAA, the decision is not a cancellation or waiver of debts owed by airlines. It stressed that all statutory obligations remain valid and must still be settled in due course.

The statement partly read, “This decision 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,”

“It is important to state clearly 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 Authority.”

The regulator also recalled that President Bola Tinubu had earlier approved a 30 per cent reduction on outstanding charges owed by domestic airlines to aviation agencies. The policy was introduced as part of efforts to cushion the impact of high Jet A1 fuel prices and support struggling operators.

The NCAA explained that the intervention is part of broader government measures to stabilise the aviation industry and prevent avoidable disruptions in air transport services across the country.

Despite the temporary relief, the authority maintained that airlines remain fully responsible for their debts. It added that structured engagement with individual operators will continue to ensure recovery without crippling the sector.

The statement further read, “This relief, as contained in a statement by the Honourable Minister of Aviation and Aerospace Development, is part of Federal Government’s broader efforts to cushion the impact of the high cost of Jet A1 fuel, stabilize 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 authority stated.

The NCAA also clarified the nature of the disputed charges, noting that the 5 per cent Ticket and Cargo Sales Charge is a statutory levy provided under the Civil Aviation Act. It explained that the charge is embedded in ticket and cargo pricing and is collected by airlines on behalf of the aviation ecosystem.

According to the regulator, the funds are not part of airline revenue or profit. Instead, they are remitted and shared among aviation agencies responsible for safety, regulation, and operational oversight.

It further stated that the Nigeria Civil Aviation Authority operates largely on a cost-recovery basis, with limited direct federal funding. As such, statutory remittances remain critical to sustaining regulatory functions and maintaining safety standards in the aviation sector.

The authority described the temporary suspension as a balancing measure designed to protect both compliance and operational stability.

“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,” the NCAA said.