NCAA suspends no-pay, no-service airline enforcement order

The Nigeria Civil Aviation Authority (NCAA) has temporarily suspended its "No-pay, No-service" enforcement directive against domestic airlines concerning outstanding statutory remittances. This decision aims to protect the operational stability of the country's aviation industry.

NCAA Director-General Chris Najomo stated that the suspension resulted from extensive consultations within the aviation sector and a careful assessment of current industry realities. Operators and stakeholders had expressed concerns that strict enforcement could exacerbate the financial difficulties already faced by airlines grappling with escalating aviation fuel prices, foreign exchange instability, and rising operational costs.

The NCAA emphasized that this suspension does not constitute a cancellation, waiver, or forgiveness of the debts owed by airlines. "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," the statement read. "It is important to state clearly that this suspension does not represent a cancellation, waiver, or forgiveness of outstanding statutory financial obligations, as such a decision is beyond the purview of the Authority."

Recalling President Bola Ahmed Tinubu's approval of a 30 percent discount on outstanding fees owed by domestic airlines to aviation agencies, the NCAA noted this as part of measures to cushion the impact of high Jet A1 prices. This intervention is intended to support the sector and stabilize airline operations. The authority reiterated that all affected airlines remain fully responsible for settling their statutory obligations, and structured engagements will continue individually to ensure debt recovery without jeopardizing the sector's stability.

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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. It is important to state clearly that this suspension does not represent a cancellation, waiver, or forgiveness of outstanding statutory financial obligations, as such a decision is beyond the purview of the Authority.