NCAA Suspends ‘No Pay, No Service’ Directive Over Airlines’ Debt Crisis

May 25, 2026
Why NCAA Suspended 3 Private Jet Operators
NCAA DG Captain Chris Najomo

The Nigeria Civil Aviation Authority has suspended the enforcement of its controversial “no pay, no service” directive against domestic airlines owing statutory charges, citing rising aviation fuel costs and the need to maintain stability in the country’s aviation sector.

In a statement issued on Sunday, the Director-General of the NCAA, Chris Najomo, said the decision followed extensive consultations with stakeholders and a review of the operational challenges facing airlines.

The regulator clarified that the suspension does not amount to a cancellation, waiver, or forgiveness of debts owed by airlines to aviation agencies.

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According to the NCAA, affected operators remain fully responsible for settling outstanding statutory remittances, adding that the authority would continue structured engagements with individual airlines to ensure compliance without destabilising the industry.

The authority also referenced an earlier intervention by President Bola Ahmed Tinubu, who approved a 30 per cent discount on outstanding fees owed by domestic carriers to aviation agencies as part of efforts to cushion the impact of soaring Jet A1 fuel prices.

 

The NCAA stressed that the five per cent Ticket and Cargo Sales Charge remains a statutory obligation under Nigeria’s Civil Aviation Act and must be remitted accordingly.

It explained that the charge is collected by airlines at the point of ticket and cargo sales on behalf of the aviation ecosystem and should not be treated as airline revenue or profit.

The authority further noted that the funds are distributed among aviation regulatory and service institutions responsible for maintaining safe and internationally compliant aviation operations.

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The NCAA said it operates on a cost-recovery basis and does not receive direct federal government funding for its daily regulatory activities, making remittances from statutory charges critical to sustaining oversight functions.

“The temporary suspension of the ‘no pay, no service’ measure is a calibrated step aimed at maintaining operational stability within the sector while continued engagement is pursued toward full settlement of outstanding obligations,” the statement said.

The development comes amid mounting concerns over the financial health of Nigeria’s domestic airlines, many of which have struggled with rising operational costs, forex pressures and persistent increases in aviation fuel prices.

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Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.

Amanze Chinonye

Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.

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