The Nigerian Civil Aviation Authority (NCAA) has announced the temporary suspension of its ‘no-pay, no-service’ directive against 11 domestic airlines that owe outstanding statutory remittances.
The decision, communicated in a statement by Director-General of Civil Aviation, Chris Najomo, comes after extensive consultations within the aviation sector and a review of prevailing operating conditions.
The suspension acknowledges the impact of rising aviation fuel costs on airline operations and the overall stability of the industry.
The original directive, issued on May 22, had instructed NCAA departments to withhold services from the affected airlines until their financial obligations were settled. Airlines listed included Air Peace, Ibom Air, Arik Air, United Nigeria Airlines, Max Air, Rano Air, NG Eagle, ValueJet, Overland Airways, Umza Air, and Caverton Helicopters.
The NCAA clarified that this suspension is not a cancellation, waiver, or forgiveness of the debts. The outstanding statutory financial obligations remain valid and enforceable.
The regulator also referenced the federal government’s earlier approval of a 30% discount on some charges owed by domestic airlines to aviation agencies, aimed at cushioning the impact of high aviation fuel prices.
The NCAA emphasized that the five percent Ticket and Cargo Sales Charge, collected from passengers and cargo, is crucial for sustaining the oversight functions of the authority and is not part of airline revenue.
The authority stated it will continue individual engagements with the airlines to ensure the recovery of outstanding debts while maintaining operational stability within the sector.
The suspension comes amidst ongoing financial pressures faced by domestic carriers, including rising operating costs, maintenance challenges, and volatile aviation fuel prices, which have led to schedule disruptions and route suspensions.