Reported by: Ijeoma G | Edited by: Oravbiere Osayomore Promise.
The Nigerian Civil Aviation Authority (NCAA) has temporarily suspended its “no pay, no service” directive that would have barred 11 domestic airlines from regulatory services over unpaid statutory remittances, citing the industry’s fragile operating environment. The decision, announced in a statement on Sunday, May 24, 2026, by Director‑General Capt. Chris Najomo, came after the aviation regulator had initially issued an internal memo on Friday, May 22, placing 11 carriers on an updated “No‑Pay‑No‑Service” list. The about‑turn averted a potential shutdown of key regulatory procedures, including safety oversight, licence renewals for pilots and engineers, and other administrative services, which could have triggered widespread flight disruptions.
The 11 affected operators are Air Peace Limited, Ibom Air Limited, Arik Air Limited, United Nigeria Airlines, Umza Air, NG Eagle, Max Air Limited, Caverton Helicopters, Overland Airways, Rano Air, and ValueJet. They had been barred from accessing any NCAA service without prior financial clearance from the Directorate of Finance and Accounts. The impasse centred on the 5% Ticket Sales Charge (TSC) and Cargo Sales Charge (CSC) – statutory funds collected by airlines at the point of sale on behalf of the NCAA. Under the Civil Aviation Act, these charges are compulsory and intended to sustain safety oversight, personnel training and economic regulation. According to the NCAA, the levies are not part of airline operating revenue and must be remitted in full, as the agency receives no direct government funding for its routine regulatory functions. “These funds, after they are remitted, are not retained by a single institution; they are shared among the regulator (NCAA) and key aviation service providers, which perform specific responsibilities that collectively sustain safe, efficient, and internationally compliant aviation operations,” Najomo explained.
The suspension follows President Bola Ahmed Tinubu’s April 2026 approval of a 30% discount on outstanding statutory fees owed by domestic airlines to aviation agencies, a measure designed to cushion the impact of surging Jet A1 fuel prices. The discount, which covers obligations to the NCAA, the Federal Airports Authority of Nigeria (FAAN), and the Nigerian Airspace Management Agency (NAMA), was part of broader federal efforts to stabilise the sector. However, the NCAA insisted that the relief does not erase the debt, and that the carriers remain fully responsible for settling their obligations. The authority warned that “the suspension does not represent a cancellation, waiver, or forgiveness of outstanding statutory financial obligations, as such a decision is beyond the purview of the Authority.”
Aviation expert Alex Nwuba described the initial directive as a “pressure tactic aimed at compelling the airlines to engage with the regulator.” He, however, warned that strict enforcement could disrupt key processes. “If an airline needs to renew a licence for a pilot or engineer and cannot get NCAA clearance, that aircraft stays on the ground,” he said. While the suspension has temporarily eased tensions, Nwuba called for a collaborative approach rather than adversarial tactics. The spokesperson for United Nigeria Airlines, Chibuike Oluka, confirmed that the airline’s management was in discussions with the NCAA and pledged to provide updates after the meeting. Other affected carriers had not issued official statements at the time of filing.
Although the NCAA has stepped back from immediate sanctions, the underlying issue of unpaid statutory charges remains unresolved. The authority reiterated that “all affected operators remain fully responsible for the settlement of their statutory debts” and that it would pursue structured engagements with each airline to ensure recovery while maintaining operational stability. The suspension, according to the NCAA, is “a calibrated step aimed at maintaining operational stability … while continued engagement is pursued toward full settlement of outstanding obligations.” Industry watchers expect the reprieve to be short‑lived unless the airlines begin to remit the accumulated charges or negotiate a structured payment plan. With the summer travel season approaching, the standoff between the NCAA and the carriers serves as a stark reminder of the financial pressures threatening Nigeria’s domestic aviation industry.
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