NCAA Suspends ‘No Pay, No Service’ Enforcement Despite ₦12bn Airline Debts

NCAA Suspends ‘No Pay, No Service’ Enforcement Despite ₦12bn Airline Debts The Nigerian Civil Aviation Authority NCAA has suspended the enforcement of its controversial “No Pay, No Service” directive against domestic airlines, despite outstanding debts of about ₦12 billion in unpaid ticket and cargo charges. The decision comes just days after the regulator moved to restrict services to 11 airlines over failure to remit statutory levies, sparking tension within Nigeria’s aviation sector. According to the NCAA, the temporary suspension followed extensive consultations with stakeholders and a review of prevailing operational conditions in the aviation industry. The authority said the decision was influenced by the rising cost of aviation fuel (Jet A1) and the need to maintain stability in airline operations across the country. However, it stressed that the suspension does not cancel or waive the debts owed by airlines, insisting that all affected operators remain fully responsible for their outstanding obligations.The debts at the centre of the dispute relate to the 5% Ticket Sales Charge (TSC) and Cargo Sales Charge CSC, which airlines collect from passengers and remit to aviation agencies. These charges are shared among key aviation bodies, including the NCAA, Nigerian Airspace Management Agency NAMA, Nigerian Meteorological Agency (NiMet), and the Nigerian Safety Investigation Bureau (NSIB). The NCAA explained that the funds are statutory and essential for regulatory oversight, safety inspections, and aviation sector operations.The authority also referenced earlier intervention by the federal government, including approval of a 30% discount on certain outstanding charges owed by domestic airlines as part of efforts to cushion operational pressures in the sector. Officials said the measure was intended to help stabilise airlines struggling with high fuel costs, forex challenges, and rising maintenance expenses. Despite suspending enforcement, the NCAA reiterated that the directive should not be interpreted as leniency. It warned that the suspension is only temporary, adding that structured engagement with airlines would continue to ensure full recovery of outstanding debts without disrupting aviation services.

• High aviation fuel prices
• Foreign exchange instability
• Rising maintenance costs
• Passenger demand fluctuations

Industry stakeholders had warned that strict enforcement of debt recovery measures could further disrupt flight operations and worsen financial stress across the sector.The NCAA said it will continue engaging airlines individually to agree on repayment structures and settlement plans, while maintaining regulatory oversight responsibilities. It added that ensuring financial compliance remains critical to sustaining aviation safety, infrastructure, and regulatory effectiveness in Nigeria.