The Nigeria Civil Aviation Authority (NCAA), has temporarily suspended its “no pay, no service” order issued against eleven airlines over outstanding statutory remittances.
The Director-General Civil Aviation, Capt. Chris Najomo stated that the latest decision was made following consultation and careful review of current operating realities, particularly the rising cost of aviation fuel and its impact on airline operations and overall industry stability, reports The Nation.
Najomo, while noting that the suspension does not represent a cancellation, waiver, or forgiveness of outstanding statutory financial obligations, added that the decision to cancel, waive or forgive outstanding debt was beyond the purview of the Authority.
The Authority had earlier issued a directive to all its directorates to withdraw services from eleven airlines over unpaid statutory remittances.
The affected airlines are Air Peace, Ibom Air, Arik Air, United Nigeria Airlines, Umza Air, NG Eagle, Max Air, Caverton Helicopters, Overland Airways, Rano Air, and ValueJet.
Details of the temporary suspension of the latest order are contained in a statement signed by Capt. Najomo.
The statement reads: “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.
“It would be recalled that President Bola Tinubu, in his magnanimity, already approved a 30 per cent discount on such outstanding fees owed by domestic airlines to aviation agencies, including NCAA.
“This relief, as contained in a statement by the Honourable Minister of Aviation and Aerospace Development, is part of the federal government’s broader efforts to cushion the impact of the high cost of Jet A1 fuel, stabilise the aviation industry and safeguard airline operations”.
The statement continues: “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.
“The 5 per cent Ticket and Cargo Sales Charge is a statutory component of the aviation system in Nigeria required by the Civil Aviation Act, and embedded in the cost of air travel and cargo services.
“It must be emphasised that this charge is collected at the point of ticket and cargo sales by airlines on behalf of the aviation ecosystem, and is expected to be remitted to the NCAA for defined purposes. It is not a part of operating profit or revenue for the collecting airline, and must therefore not be treated as such.
“These funds, after remitted, are not retained by a single institution; they are shared among the regulator (NCAA) and key aviation service providers which perform specific responsibilities that collectively sustain safe, efficient, and internationally compliant aviation operations.
“Within this structure, the Nigerian Civil Aviation Authority operates on a cost recovery basis and does not receive direct funding from the Federal Government for its day-to-day regulatory activities. The funds derived from statutory charges are therefore not only essential, but critical, to sustain oversight functions”.
He further added that the temporary suspension of the “no pay, no service” measure was aimed at maintaining operational stability within the sector while continued engagement is pursued toward full settlement of outstanding obligations.
Najomo stated: “NCAA’s decision is, therefore, predicated on maintaining a balance between regulatory enforcement and the need to ensure that the industry continues to function without avoidable disruption, while still upholding the principle that statutory charges already collected must be remitted for their intended purposes”.
