Nigeria NCAA Suspends No-Pay No-Service Directive for Domestic Airlines

The Nigerian Civil Aviation Authority suspended its "no-pay, no-service" directive against 11 domestic airlines on Sunday evening. The directive had instructed NCAA departments and regional offices to withhold services from carriers with outstanding statutory remittances.

The authority announced the decision in a statement issued by Director-General of Civil Aviation Chris Najomo. The suspension came two days after an internal memo dated 22 May directed enforcement of the policy.

The memo, signed by Director of Finance and Accounts Olufemi Odukoya, placed the affected airlines on a "no-pay-no-service" arrangement pending financial clearance. Airlines named in the memo include 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 said the temporary suspension followed consultations with industry stakeholders and concerns over rising aviation fuel costs affecting airline operations.

"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 statement said. The NCAA clarified that the suspension does not cancel, waive, or forgive the debts.

"It is important to state clearly that this suspension does not represent a cancellation, waiver, or forgiveness of outstanding statutory financial obligations," the authority added. The regulator referenced a federal government measure that approved a 30 per cent discount on some charges owed by domestic airlines to aviation agencies, including the NCAA.

The authority said the measure forms part of efforts to cushion the impact of rising aviation fuel prices. The NCAA stated that airlines remain responsible for remitting the five per cent Ticket and Cargo Sales Charge collected from passengers. "The funds derived from statutory charges are therefore not only essential, but critical, to sustain oversight functions," the statement added.

The authority said it would continue individual engagements with the affected airlines to recover the outstanding debts while maintaining operational stability.