The Nigerian Civil Aviation Authority (NCAA) has suspended its “no pay, no service” directive earlier issued against domestic airlines over unpaid statutory charges, in a move aimed at stabilising the aviation sector.
The regulator said the decision followed a reassessment of current conditions in the industry, particularly the rising cost of aviation fuel and its impact on airline operations.
The suspension applied to domestic carriers previously listed for sanctions over outstanding financial obligations.
However, the NCAA clarified that the suspension does not cancel the debts owed by the airlines, stressing that operators are still required to settle all outstanding charges.
Director-General of the NCAA, Chris Najomo, said the Federal Government had earlier approved a 30 per cent reduction on outstanding fees owed by domestic airlines to aviation agencies as part of efforts to ease financial pressure in the sector.
“This relief, as contained in a statement by the Honourable Minister of Aviation and Aerospace Development, is part of Federal Government efforts to cushion the impact of the high cost of Jet A1 fuel, stabilise the aviation industry and safeguard airline operations,” Najomo said.
He added that the Authority would continue engagement with airline operators on structured repayment arrangements while ensuring uninterrupted flight operations across the country.
Najomo also explained that the five per cent Ticket and Cargo Sales Charge is a statutory levy collected by airlines during ticket and cargo sales on behalf of aviation agencies.
“It is not a part of operating profit or revenue for the collecting airline, and must therefore not be treated as such,” he stated.
According to the NCAA, the funds are distributed among aviation agencies and service providers responsible for safety regulation and oversight functions within the sector.
He further noted that it relied heavily on these remittances to sustain daily regulatory operations, as it does not receive direct federal funding for routine activities.
Najomo said the temporary suspension was necessary to maintain stability in the aviation industry while ongoing discussions on debt repayment continue.
Airlines earlier affected by the sanction include Air Peace, Ibom Air, Arik Air, United Nigeria Airlines, Max Air, ValueJet, and other domestic operators.
