The Nigerian Civil Aviation Authority has suspended enforcing a controversial "no pay, no service" directive against 11 airlines with outstanding statutory debts, citing mounting financial pressure on carriers and broader concerns over industry stability.
In a statement, the NCAA said the suspension followed consultations with industry stakeholders and a review of operating conditions, particularly the impact of rising Jet A1 fuel prices on airlines.
The regulator stressed that the move does not amount to a "cancellation, waiver, or forgiveness of debts" owed by airlines. Affected operators remain responsible for settling outstanding statutory remittances. However, the NCAA will engage airlines individually to recover debts "in a manner that supports both compliance and sector stability".
The "no pay, no service" policy had been intended to deny certain services to airlines that failed to remit statutory charges collected on behalf of aviation agencies.
The regulator said President Bola Ahmed Tinubu had already approved a 30% discount on outstanding fees that domestic airlines owe to aviation agencies, including the NCAA, as the government seeks to cushion the impact of soaring aviation fuel costs and stabilise the sector.
The NCAA also clarified that a 5% ticket and cargo sales charge collected by airlines was a statutory levy embedded in ticket and cargo sales' costs. The authority explained that the charge is distributed among aviation agencies, while emphasising that the NCAA operates on a cost-recovery basis and receives no direct federal funding for its day-to-day regulatory tasks.
An internal NCAA memo dated May 22, obtained by NigerianFLIGHTDECK, instructed all directorates to withhold services from airlines with outstanding statutory debts unless they secured financial clearance from the regulator’s Directorate of Finance and Accounts, triggering concern across Nigeria’s aviation industry over the impact of unresolved financial obligations.
The memo named the affected operators as Air Peace, Ibom Air, Arik Air, United Nigeria Airlines, NG Eagle, MaxAir (Nigeria), Rano Air, Overland Airways, ValueJet, UmzaXpress, and Caverton Helicopters.
