The Nigeria Civil Aviation Authority (NCAA) has intervened in the escalating dispute between aviation unions and airlines over outstanding Ticket Sales Charge (TSC) obligations, in a move aimed at preventing industrial action that could disrupt flight operations across the country.
The intervention followed a three-day strike notice issued on August 7, 2026, by the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) and the National Union of Air Transport Employees (NUATE) against airlines they alleged were indebted to aviation agencies.
The unions’ position has introduced a fresh dimension to an already sensitive financial dispute, as they are also demanding what they described as unrestricted unionisation of airline employees.
In a joint statement, the unions warned that they could commence strike action against affected airlines, insisting that their demands went beyond the settlement of accumulated TSC liabilities.
They alleged that some airlines had made “unfettered unionisation of staff in their organisation impossible,” despite repeated efforts by the unions to organise workers.
According to the unions, workers in the affected airlines “dare not even express the intention to belong to unions of their choices.”
They consequently demanded an “unequivocal declaration through circulars and other direct means of communication” by the airlines, assuring employees that they were free to join unions of their choice without fear of victimisation.
The unions also called for the immediate remittance of funds belonging to aviation agencies, arguing that this was necessary to facilitate the implementation of conditions of service for their members across the sector.
However, the NCAA has moved to prevent the disagreement from escalating into an industrial crisis.
The authority’s Director of Public Affairs and Consumer Protection, Michael Achimugu, said the Director General, Captain Chris Najomo, had decided to intervene because of the potential consequences of a strike on airline operations and passengers.
Achimugu, who spoke with newsmen, said the NCAA, as the industry regulator, had a responsibility to ensure that industrial action did not unnecessarily paralyse flight operations.
He rejected suggestions that the regulator was using the unions to pressure airlines into paying their debts.
According to him, the unions were within their rights to demand payment of outstanding obligations owed by airlines to the NCAA, particularly because aviation workers themselves depend on the agencies receiving such funds to meet their financial obligations.
Achimugu explained that the NCAA and affected airlines had already reached an arrangement for repayment of the accumulated debt.
Under the agreement, the airlines were expected to make an initial payment of 10 per cent of their old liabilities and thereafter settle the balance according to an agreed instalment schedule.
“It was the Minister of Aviation and Aerospace Development, Festus Keyamo and the Director General, CAA, Captain Chris Najomo that stopped the unions when they wanted to picket indebted airlines last week,” Achimugu said.
He added that Najomo had informed the unions that the airlines had commenced payment under the agreed arrangement and consequently appealed to them to suspend their planned picketing.
“Of course, NCAA absolutely cannot use labour to collect its debt from airlines so, such suggestion is not true because NCAA is the regulator and knows how to relate with the airlines on such matters,” he said.
Achimugu further disclosed that the federal government had granted the airlines a 30 per cent waiver on the old debt.
He explained that the concession was consistent with the NCAA’s policy under Najomo of ensuring that regulation did not push airlines out of business.
“The onus is on the debtors to show reciprocity and magnanimity with a degree of honesty,” he said.
Despite the controversy surrounding the accumulated liabilities, investigation showed that airlines continue to make payments on their current 5 per cent Ticket Sales Charge, as well as applicable Cargo Sales Charge and Charter obligations.
The financial burden varies considerably according to passenger traffic and cargo volumes.
Aero Contractors, for instance, pays between N250 million and N400 million monthly to the NCAA, depending on its passenger and cargo throughput.
United Nigeria Airlines is understood to remit approximately N600 million monthly, while Air Peace, the country’s largest airline by passenger and operational scale, pays about N2 billion monthly.
The figures underline the scale of the financial relationship between the airlines and aviation agencies and also provide context to the dispute over the accumulated historical debt.
In addition to the 30 per cent waiver granted on the old liabilities, some airlines had separately negotiated discounts with the NCAA.
Achimugu, however, said he would need to verify the authority’s accounts before confirming the extent of such concessions.
Unions’ demands raise fresh questions
The inclusion of unionisation in the unions’ demands has complicated the dispute.
While the unions alleged that some airlines had prevented their workers from joining unions, there was no indication in the material available that employees of any of the airlines specifically identified by the unions had formally complained to them about being denied the right to join a union.
The NCAA spokesperson also questioned suggestions that the unions might single out one airline for picketing in an attempt to send a message to other operators.
Achimugu said such selective action could create the impression that the unions were being sponsored.
He argued that if an airline had violated aviation rules, the regulator possessed established mechanisms for dealing with such violations and did not need industrial action as a debt recovery tool.
Aero Contractors warns of industry-wide consequences
For airline operators, however, the development has raised broader concerns about the financial sustainability of Nigeria’s aviation industry.
The Managing Director and Chief Executive Officer of Aero Contractors, Captain Ado Sanusi, described the use of labour to recover debts allegedly owed by airlines as an aberration.
Sanusi argued that the current dispute should instead prompt a fundamental review of the financial and regulatory structure of the aviation industry.
“The aviation industry needs total overhaul. It is high time the 5% TSC is reviewed,” he said.
According to him, the problem goes beyond how revenue from the charge is distributed among aviation agencies.
“Everyone knows that Nigerian airlines are paying so much taxes and charges. Even the International Air Transport Association (IATA) said that Nigerian airlines are being over taxed.”
Sanusi noted that the 5 per cent TSC has existed for more than three decades and said airlines had repeatedly called for its review.
He questioned why labour unions would be brought into a dispute involving debts for which the NCAA and airlines had already agreed on a repayment mechanism.
“This is the first time labour is picketing airlines over debt owed the agencies which payment system has been agreed by both NCAA and the airlines,” he said.
“It is surprising that the regulator (NCAA) is keeping quiet while this is happening.
”This is totally wrong. If we do not do something urgently, this is the beginning of the collapse of the industry.”
Sanusi maintained that the NCAA already has sufficient statutory powers to deal with airlines that violate regulatory requirements.
He said the regulator could suspend an airline’s operating licence where necessary, while cases involving alleged corruption, financial misconduct or criminal offences could be referred to the appropriate law-enforcement authorities.
For him, deploying organised labour to force airlines to settle regulatory debts sets a dangerous precedent for an industry already struggling under a heavy burden of taxes, charges and operating costs.
The unfolding dispute therefore presents the NCAA, the unions and airline operators with a delicate balancing act: recovering legitimate regulatory revenues while ensuring that the financial pressures confronting airlines do not trigger further operational instability.
With the unions’ strike threat hanging over the industry, the success of the repayment agreement and the NCAA’s intervention could determine whether the dispute ends at the negotiating table or develops into an industrial action capable of affecting passengers and flight operations nationwide.
