NCAA Suspends ‘No Pay, No Service’ Order Against 11 Airlines
The Nigeria Civil Aviation Authority (NCAA) has temporarily suspended its “no pay, no service” directive earlier issued against eleven airlines over outstanding statutory remittances.
Director-General of Civil Aviation, Capt. Chris Najomo, said the decision followed consultations within the aviation sector and a review of current operational challenges, particularly the rising cost of aviation fuel and its impact on airline operations and overall industry stability.
He, however, stressed that the suspension does not amount to a cancellation, waiver, or forgiveness of the debts owed, noting that the authority lacks the power to grant such concessions.
The NCAA had previously ordered its directorates to withdraw services from eleven indebted airlines for failing to remit statutory charges.
The affected airlines include Air Peace, Ibom Air, Arik Air, United Nigeria Airlines, Umza Air, NG Eagle, Max Air, Caverton Helicopters, Overland Airways, Rano Air, and ValueJet.
In a statement signed by Capt. Najomo, the authority said the enforcement of the directive has now been put on hold after wide consultations and a reassessment of current industry conditions.
According to the statement, “The NCAA wishes to inform stakeholders in the aviation industry that the previously communicated enforcement of the ‘no pay, no service’ directive in respect of certain airlines with outstanding statutory remittances has been temporarily suspended.
“This decision follows extensive consultations within the sector and a careful review of current operating realities, particularly the rising cost of aviation fuel and its impact on airline operations and overall industry stability.
“It is important to state clearly that this suspension does not represent a cancellation, waiver, or forgiveness of outstanding statutory financial obligations as such decision is beyond the purview of the Authority.”
The statement further recalled that President Bola Tinubu had approved a 30 per cent discount on outstanding fees owed by domestic airlines to aviation agencies, as part of efforts to ease pressure from high aviation fuel costs and stabilise the sector.
“All affected operators, therefore, remain fully responsible for the settlement of their statutory debts, and the NCAA will pursue structured engagements with airlines individually to ensure recovery in a manner that supports both compliance and sector stability,” it added.
The NCAA also clarified that the 5 per cent Ticket and Cargo Sales Charge is a statutory levy collected by airlines on behalf of the aviation system and must be remitted for regulatory and operational purposes, not treated as airline revenue.
It explained that the funds are shared among aviation agencies and are critical to sustaining safety oversight and regulatory functions, noting that the NCAA operates on a cost-recovery basis without direct federal funding for its daily operations.
Najomo added that the temporary suspension was aimed at preventing disruption in the sector while ongoing engagements continue to ensure full compliance with statutory obligations.
Titilope Adako is a talented and intrepid journalist, dedicated to shedding light on the untold stories of Osun State and Nigeria. Through incisive reporting, she tackles a broad spectrum of topics, from politics and social justice to culture and entertainment, with a commitment to accuracy, empathy, and inspiring positive change.
