NCAA Bars 11 Airlines From Regulatory Services Over Unpaid Statutory Charges

The Nigeria Civil Aviation Authority has placed 11 domestic airlines on its updated “No-Pay-No-Service” list over failure to remit outstanding statutory charges to the regulator.

In a directive issued through an internal memo signed by the Director of Finance and Accounts, Mr. Olufemi Odukoya, the aviation regulator instructed all operational directorates to withhold regulatory services from the affected airlines until they settle their debts and obtain financial clearance.

The affected airlines include Air Peace Limited, Arik Air Limited, Max Air Limited, United Nigeria Airlines, Ibom Air Limited, ValueJet, Overland Airways, Rano Air, NG Eagle Airline, Umza Air and Caverton Helicopters.

According to the NCAA, the airlines failed to remit accumulated financial obligations, particularly the 5 per cent Ticket Sales Charge (TSC) and Cargo Sales Charge (CSC), which are statutory levies collected from passengers on behalf of the regulator.

Industry experts described the failure to remit the charges as a serious breach of aviation regulations, noting that the funds are not airline revenue but statutory payments held in trust for the NCAA.

The enforcement action forms part of the NCAA’s ongoing “Zero Debt Strategy” introduced under the leadership of Acting Director-General, Chris Najomo, aimed at enforcing financial discipline in the aviation sector and preventing airlines from using passenger-paid taxes as operational funds.

The latest development comes amid mounting financial pressures within the aviation industry, as ground handling companies have also raised concerns over billions of naira owed by domestic operators, threatening possible service disruptions if the debts remain unpaid.

The NCAA has yet to indicate how long the restrictions will remain in force, but industry stakeholders say the move could affect airline operations if the affected carriers fail to comply promptly.