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NCAA Suspends 'No Pay, No Service' Order Against Indebted Airlines

Nigeria's aviation regulator has stepped back from a controversial directive that would have halted services to domestic airlines owing statutory charges, suspending enforcement after urgent talks with industry stakeholders.

The Nigeria Civil Aviation Authority announced the suspension Monday, with Director-General Capt. Chris Najomo saying the decision followed extensive consultations and a review of conditions in the sector, particularly the soaring cost of Jet A1 aviation fuel.

The NCAA had on May 22 placed at least 11 airlines on a "no pay, no service" list over mounting debts, triggering immediate talks with the regulator.

Airlines affected include Air Peace, Ibom Air, Overland, Arik Air, United Nigeria Airlines, Max Air and Caverton, among others.

The authority was quick to clarify, however, that the suspension does not amount to a waiver or cancellation of outstanding debts.

"The charge is not part of airline revenue or operating profit and should not be treated as such," the NCAA stated, referring to the five per cent Ticket and Cargo Sales Charge at the centre of the dispute.

The regulator said all affected carriers remain fully responsible for settling their statutory obligations, and that structured engagements with operators would continue to ensure compliance without disrupting flight operations.

The NCAA also noted that President Bola Tinubu had previously approved a 30 per cent discount on outstanding charges owed by domestic airlines to aviation agencies, a measure aimed at cushioning the impact of high fuel costs and stabilising the sector.

Defending the disputed levy, the authority described it as a statutory charge embedded in ticket and cargo sales under the Civil Aviation Act, collected by airlines on behalf of the broader aviation ecosystem and remitted to the regulator and other service providers.

The NCAA added that it operates on a cost-recovery basis and receives no direct federal funding for its daily regulatory activities, making statutory remittances critical to sustaining safety and oversight functions.

The regulator described the suspension as a calibrated step to balance enforcement with the need to avoid disruption in the industry, adding that it remains committed to full recovery of outstanding debts through a framework that supports both compliance and operational sustainability.

 

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