NCAA suspends debt enforcement against domestic airlines

The Nigeria Civil Aviation Authority (NCAA) has temporarily halted its "No-pay, No-service" enforcement directive against domestic airlines concerning outstanding statutory remittances. This decision, announced on Monday, aims to safeguard operational stability within Nigeria's aviation industry.

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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.

In a statement signed by NCAA Director-General Chris Najomo, the authority explained that the suspension followed extensive consultations with aviation sector stakeholders and a careful assessment of the industry's current realities. Operators and stakeholders had raised concerns that strict enforcement could exacerbate the financial difficulties already faced by airlines, which are grappling with soaring aviation fuel prices, foreign exchange instability, and increasing operational costs.

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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.

The NCAA emphasized that this suspension should not be misconstrued as a cancellation, waiver, or forgiveness of the debts owed by airlines to the authority and other aviation agencies. "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," the statement read.

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This relief, as contained in a statement by the Honourable Minister of Aviation and Aerospace Development, is part of Federal Government’s broader efforts to cushion the impact of the high cost of Jet A1 fuel, stabilize the aviation industry and safeguard airline operations.

This move is part of broader Federal Government efforts to support the aviation sector. President Bola Tinubu had previously approved a 30% discount on outstanding fees owed by domestic airlines to aviation agencies, intended to cushion the impact of high Jet A1 fuel prices. The NCAA will continue structured engagements with individual airlines to ensure debt recovery without jeopardizing the sector's stability. The authority also noted that the disputed charges include a 5% Ticket and Cargo Sales Charge, a statutory component established under the Civil Aviation Act.

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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.