May 25 (THEWILL) — The Nigeria Civil Aviation Authority has suspended its controversial “no pay, no service” directive earlier imposed on domestic airlines owing statutory remittances, granting indebted carriers temporary relief amid mounting financial pressures in the aviation sector.
The regulator announced the decision on Monday, citing ongoing consultations with stakeholders and worsening operational challenges confronting airline operators, particularly the persistent rise in the cost of Jet A1 aviation fuel.
According to the Authority, the move followed a review of prevailing industry realities and the need to prevent further instability in the nation’s already fragile aviation sector.
Despite the suspension, the NCAA stressed that the decision does not amount to a waiver, cancellation, or forgiveness of debts owed by airlines to aviation agencies.
The Authority maintained that airline operators remain fully responsible for settling all outstanding statutory obligations and warned that funds already collected from passengers and cargo operators must still be remitted accordingly.
The regulator noted that it would continue to engage airlines individually to establish structured repayment arrangements capable of ensuring compliance without crippling flight operations across the country.
The NCAA recalled that President Bola Tinubu had earlier approved a 30 per cent discount on outstanding statutory charges owed by domestic airlines to aviation agencies as part of efforts to cushion the impact of soaring aviation fuel costs and stabilise the industry.
Clarifying the nature of the disputed charges, the Authority explained that the 5 per cent Ticket and Cargo Sales Charge is a statutory levy established under the Civil Aviation Act and embedded in the cost of air travel and cargo services.
It stated that airlines merely collect the charges on behalf of the aviation system at the point of ticket and cargo sales and are required by law to remit them to the appropriate authorities.
“The funds do not constitute airline revenue or profit and should not be treated as such,” the NCAA said.
The Authority further explained that proceeds from the statutory charges are distributed among critical aviation institutions, including the NCAA and other service providers responsible for ensuring safe, efficient, and internationally compliant aviation operations in Nigeria.
The regulator also emphasised that it operates largely on a cost-recovery basis and does not receive direct federal funding for routine oversight activities, making prompt remittance of statutory charges essential to sustaining safety regulation and operational monitoring.
According to the NCAA, the temporary suspension of the enforcement directive represents a measured intervention aimed at balancing strict regulatory enforcement with the urgent need to sustain airline operations and preserve stability within the aviation industry.
The Authority, however, warned that airlines must not interpret the reprieve as immunity from compliance, insisting that statutory funds collected on behalf of the aviation system must ultimately be remitted for their intended purposes.
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