The Nigeria Civil Aviation Authority has temporarily suspended its planned “No Pay, No Service” enforcement action against 11 domestic airlines over outstanding statutory debts estimated at about N12 billion.
The decision followed extensive consultations between the regulator and industry stakeholders amid concerns over rising operational costs, particularly the continued increase in aviation fuel prices and the need to maintain stability within Nigeria’s aviation sector.
The affected carriers include Air Peace, Ibom Air, Arik Air, United Nigeria Airlines, ValueJet, Max Air, Overland Airways, Rano Air, NG Eagle, Umza Air and Caverton Helicopters.
An internal memo dated May 22, signed by the NCAA’s Director of Finance and Accounts, Olufemi Odukoya, had earlier directed all directorates of the authority to withhold regulatory services from the affected airlines pending financial clearance from the finance department.
However, in a statement issued by the Director-General of Civil Aviation, Capt. Chris Najomo, the authority clarified that the suspension of the sanction does not amount to a waiver of the airlines’ financial obligations.
According to Najomo, all operators involved remain fully responsible for settling outstanding statutory charges, including the five per cent Ticket Sales Charge and Cargo Sales Charge collected by airlines on behalf of aviation agencies.
He explained that the statutory charges are shared among key aviation agencies, including the NCAA, the Nigerian Airspace Management Agency, the Nigerian Meteorological Agency and the Nigerian Safety Investigation Bureau, to support regulatory oversight, air navigation, weather services and aviation safety operations.
Najomo stressed that the NCAA operates largely on a cost-recovery basis without direct Federal Government funding for its day-to-day regulatory activities, making remittances from airlines critical to sustaining oversight and safety responsibilities.
“The temporary suspension of the ‘No Pay, No Service’ measure is a calibrated step aimed at maintaining operational stability within the sector while continued engagement is pursued toward full settlement of outstanding obligations,” he stated.
The development comes weeks after President Bola Tinubu approved a 30 per cent discount on statutory debts owed by domestic airlines to aviation agencies as part of efforts to cushion the impact of high aviation fuel costs on operators.
Industry stakeholders say the move reflects growing concerns over the financial pressures facing Nigerian airlines amid escalating operational expenses, foreign exchange challenges and rising fuel prices.
