Aviation operators, regulators locked in debt row

Tensions are escalating in Nigeria's aviation sector between the Nigeria Civil Aviation Authority (NCAA) and the Airline Operators of Nigeria (AON) due to disputes over statutory charges and regulatory actions.

The NCAA recently issued a "No-Pay-No-Service" order to 11 airlines, including major carriers like Air Peace and Ibom Air, for allegedly failing to remit billions of naira in statutory payments. These charges include the five percent Ticket Sales Charge and Cargo Sales Charge, which are collected by airlines on behalf of the aviation ecosystem to fund safety oversight, training, and economic regulation.

The directive, which mandated that no regulatory or administrative services be rendered without financial clearance, sent shockwaves through the industry. Operators feared significant disruptions to flight schedules and operational bottlenecks, impacting thousands of daily passengers. The NCAA defended its stance, stating that it could no longer overlook the non-remittance of funds critical for sustaining aviation oversight and safety functions.

However, less than 24 hours after the hardline directive, the NCAA announced a temporary suspension of the "No-pay-No-service" order. While acknowledging the severe economic challenges faced by local airlines, the regulator maintained that delayed remittances could compromise its ability to conduct risk-based safety surveillance and meet international oversight obligations. Industry insiders suggest the NCAA's position reflects growing concerns about its own financial liquidity and its capacity to adhere to global aviation standards.

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The DGCA has directed that no directorate should render any service to the above airline without financial clearance from the Director of Finance and Accounts.