NCAA Suspends ‘No Pay, No Service’ Crackdown on Indebted Airlines

By Emmanuel Kwada

The Nigeria Civil Aviation Authority (NCAA) has suspended the enforcement of its controversial “no pay, no service” directive against domestic airlines owing statutory charges.

The decision, announced by Director-General of Civil Aviation, Capt. Chris Najomo, follows extensive stakeholder consultations and takes into account the difficult operating environment, particularly the soaring cost of Jet A1 aviation fuel.

Daily Trust reports that the NCAA had, in a May 22 memo, placed no fewer than 11 airlines on the restricted list. The affected carriers include major operators such as Air Peace, Ibom Air, Overland, Arik Air, United Nigeria Airlines, Max Air, and Caverton.

The airlines promptly engaged the regulatory body, leading to the temporary suspension of the directive to prevent potential flight disruptions.

However, the NCAA clarified that the suspension does not amount to a waiver or cancellation of debts. All affected airlines remain fully liable for their statutory obligations, and the authority will continue structured engagements to ensure compliance while safeguarding operational stability.

The regulator recalled that President Bola Ahmed Tinubu had earlier approved a 30 per cent discount on outstanding charges owed by domestic airlines to aviation agencies as a relief measure to cushion the impact of high fuel costs and stabilise the sector.

The NCAA also defended the five per cent Ticket and Cargo Sales Charge, describing it as a statutory levy mandated under the Civil Aviation Act. It stressed that the charge, collected by airlines on behalf of the aviation ecosystem, is not part of airline revenue and must be remitted to relevant agencies for safety and operational upkeep.

“The authority operates on a cost-recovery basis and does not receive direct funding from the Federal Government for its regulatory activities,” the statement noted, underscoring the importance of remittances for maintaining oversight and safety standards.

The NCAA described the suspension as a “calibrated step” aimed at balancing regulatory enforcement with the need to avoid disruptions in the aviation sector, while remaining committed to full debt recovery through sustainable frameworks.