The Nigerian Civil Aviation Authority has suspended its earlier “no-pay, no-service” directive issued against domestic airlines over outstanding statutory remittances owed to the regulator.
The authority announced the decision on Sunday in a statement signed by Director-General of Civil Aviation Chris Najomo, following consultations with industry stakeholders and concerns over rising operating costs facing airlines.
The suspension comes just days after the NCAA instructed its departments and regional offices to withhold regulatory services from 11 domestic carriers over unpaid financial obligations.
An internal memo dated May 22 and signed by the Director of Finance and Accounts, Olufemi Odukoya, had directed all NCAA directorates and regional offices to place the affected airlines on a “no-pay-no-service” arrangement pending financial clearance.
Airlines affected by the directive 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 earlier directive had raised concerns within the aviation industry over possible disruptions to airline operations at a time when domestic carriers are already struggling with rising aviation fuel prices, foreign exchange shortages and maintenance costs.
Under the arrangement, airlines risked losing access to certain regulatory services until their debts were settled.
In the latest statement, however, the NCAA said implementation of the enforcement action had been temporarily suspended after a review of prevailing industry conditions.
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“The previously communicated enforcement of the ‘no pay, no service’ directive in respect of certain airlines with outstanding statutory remittances has been temporarily suspended,” the authority said.
The regulator stressed that the suspension did not amount to a waiver or cancellation of the debts owed by the airlines.
“It is important to state clearly that this suspension does not represent a cancellation, waiver, or forgiveness of outstanding statutory financial obligations,” the statement added.
The NCAA also referenced the federal government’s earlier approval of a 30% discount on some charges owed by domestic airlines to aviation agencies as part of measures to cushion the impact of rising Jet A1 aviation fuel prices.
According to the authority, airlines remain obligated to remit statutory charges collected from passengers through ticket and cargo sales.
The NCAA said the five per cent Ticket and Cargo Sales Charge is backed by the Civil Aviation Act and does not form part of airline operating revenue.
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“The funds derived from statutory charges are therefore not only essential, but critical, to sustain oversight functions,” the regulator said.
The authority added that it would continue engagements with the affected airlines individually to recover the outstanding debts while ensuring operational stability across the aviation sector.
Nigeria’s domestic aviation industry has faced mounting financial pressure in recent months due to rising fuel costs, aircraft maintenance challenges, exchange rate volatility and supply chain disruptions, leading to flight delays, route suspensions and reduced capacity among several carriers.
