NCAA Halts Enforcement of ‘No Pay, No Service’ Policy for Indebted Airlines
By Benjamin GBOR
The Nigerian Civil Aviation Authority (NCAA) has suspended the implementation of its controversial “No Pay, No Service” policy against domestic airlines owing statutory charges, citing prevailing operational difficulties in the aviation sector.
In a statement issued on Sunday in Lagos, the Director-General of the NCAA, Chris Najomo, explained that the decision was reached after consultations with industry stakeholders and a review of the financial pressures confronting airline operators, especially the rising cost of Jet A1 aviation fuel.
Najomo clarified that the suspension does not amount to a waiver or cancellation of debts owed by airlines, stressing that all affected carriers are still expected to clear their outstanding obligations to the aviation regulator.
According to him, President Bola Ahmed Tinubu had earlier approved a 30 per cent reduction on outstanding statutory fees owed by local airlines to aviation agencies, including the NCAA, as part of efforts to ease the burden created by soaring fuel prices.
He noted that the Federal Government’s intervention was designed to stabilise the aviation industry and support airline operations during the current economic challenges.
The NCAA boss further disclosed that the authority would continue engaging operators individually through structured repayment arrangements aimed at recovering debts without worsening the operational strain on airlines.
Najomo also reiterated that the five per cent Ticket and Cargo Sales Charge remains a statutory levy established under the Civil Aviation Act and embedded in the cost of air travel and cargo services across the country.
He explained that the charge is collected by airlines on behalf of the aviation sector and must be remitted to the NCAA for designated purposes, stressing that such funds are not part of the airlines’ operating revenue or profit.
According to him, the remitted funds are distributed among the NCAA and other key aviation service providers to support the smooth functioning of the country’s aviation system.
