The Nigeria Civil Aviation Authority (NCAA) has intensified regulatory action to enforce the remittance of the statutory five per cent Ticket Sales Charge (TSC), granting airline operators a 90-day grace period to comply with new Advance Payment Guarantee (APG) requirements.
The development followed a high-level engagement between the NCAA and the Airline Operators of Nigeria (AON) held on Monday, 2 February 2026, at the Authority’s Corporate Headquarters in Abuja. The meeting was convened after the AON formally sought clarification on the NCAA’s directive requiring airlines to provide bank-backed guarantees to secure timely remittance of passenger-derived statutory charges.
According to the NCAA, the 5 per cent Ticket Sales Charge represents funds paid by passengers and held in trust by airlines before being remitted for statutory distribution across the aviation system. Persistent delays by some operators, the regulator noted, have disrupted funding flows and weakened the effectiveness of aviation safety oversight and economic regulation.
Addressing airline executives, the Director-General of Civil Aviation (DGCA), Capt. Chris Najomo, stated that the Authority’s actions are firmly grounded in the Civil Aviation Act (CAA) 2022 (as amended). He explained that the Ticket Sales Charge operates on a cost-recovery basis and is critical to funding safety regulation, economic oversight and inter-agency responsibilities across the sector.
Capt. Najomo expressed concern that delayed remittances by some airlines have continued to undermine regulatory effectiveness, stressing that predictable funding is essential in a safety-critical industry. He clarified that the introduction of Advance Payment Guarantees is not intended as a punitive measure, but as a compliance assurance tool designed to improve remittance timelines, enhance transparency and safeguard passenger funds.
“In an industry where safety is non-negotiable, funding predictability is critical,” the DGCA said, adding that APGs are globally recognised instruments for mitigating financial risks associated with statutory collections.
In response to concerns raised by airline operators regarding current operational and financial pressures, the NCAA approved a 90-day deferment of the APG requirement. The grace period is intended to allow airlines regularise outstanding remittances and align with the new compliance framework without disrupting flight operations.
The DGCA urged airlines to utilise the deferment window effectively, reiterating the Authority’s commitment to balancing firm regulatory enforcement with ease of doing business, while remaining resolute in its statutory obligation to protect public funds.
Responding on behalf of the Airline Operators of Nigeria, the Chief Executive Officer of Overland Airways, Capt. Edward Boyo, commended the NCAA for its consultative approach and openness to dialogue. He assured the regulator that all Air Operator Certificate (AOC) holders are committed to meeting their financial obligations and will take advantage of the 90-day window to settle outstanding liabilities.
Senior NCAA officials were present at the engagement, underscoring the strategic importance of the issue. Attendees included the Director of Operations, Licensing and Training Standards, Capt. Donald Spiff; Director of Air Transport Regulation, Mrs. Olayinka Babaoye-Iriobe; Director of Finance and Accounts, Mr. Olufemi Odukoya; and the Director of Legal Services and Company Secretary, Barr. Mary Tufano-Eche.
Industry observers note that the renewed focus on Advance Payment Guarantees reopens longstanding discussions around accountability and trust within Nigeria’s aviation value chain. As the deferment period runs, stakeholders will be watching closely to see whether the initiative delivers improved compliance and a more resilient funding framework for aviation safety and regulation.
