The Nigeria Civil Aviation Authority has temporarily suspended its planned enforcement of the controversial “no pay, no service” directive against domestic airlines owing statutory charges, citing the worsening impact of high aviation fuel costs and the need to preserve stability in the sector.
In a statement issued on Sunday, the aviation regulator said the decision followed extensive consultations across the industry and a review of prevailing operational realities affecting airline operators.
The directive, which had threatened to deny certain indebted airlines access to services over unpaid remittances, was earlier introduced as part of efforts to compel compliance with statutory financial obligations owed to aviation agencies.
However, the NCAA clarified that the suspension should not be interpreted as a cancellation, waiver or forgiveness of the outstanding debts, stressing that all affected airlines remain fully liable for the payments.
According to the Authority, the decision to pause enforcement was influenced partly by the Federal Government’s intervention package for airlines, including the approval by President Bola Ahmed Tinubu of a 30 per cent discount on outstanding statutory fees owed by domestic carriers to aviation agencies.
The regulator noted that the relief measure, earlier announced by the Ministry of Aviation and Aerospace Development, was designed to cushion the impact of rising Jet A1 fuel prices, support airline operations and prevent further disruption in the industry.
The NCAA explained that it would continue structured engagements with individual airlines to recover the debts in a manner that balances regulatory compliance with operational sustainability.
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It also used the statement to clarify the nature of the five per cent Ticket and Cargo Sales Charge, describing it as a statutory levy established under the Civil Aviation Act and embedded in the cost of passenger tickets and cargo transactions.
The Authority said airlines merely collect the charge on behalf of the aviation ecosystem and are required to remit the funds to the NCAA for designated industry purposes.
“It is not part of the operating profit or revenue of the airline and must therefore not be treated as such,” the statement noted.
The regulator further explained that the remitted funds are distributed among the NCAA and other aviation service providers responsible for maintaining safety oversight, operational efficiency and international compliance standards within Nigeria’s aviation sector.
The NCAA emphasized that it operates on a cost-recovery basis and does not receive direct federal funding for its daily regulatory responsibilities, making statutory remittances critical for sustaining oversight and safety functions.
According to the Authority, the temporary suspension of the enforcement measure is intended to prevent avoidable disruptions in airline operations while maintaining pressure on operators to fulfil their financial obligations.
The development comes amid mounting concerns over the financial health of Nigeria’s aviation industry, where operators continue to grapple with soaring fuel prices, foreign exchange pressures, rising maintenance costs and shrinking profit margins.
