By Chinelo Obogo
Relief has come the way of 11 local airlines indebted to the Nigerian Civil Aviation Authority (NCAA), as the regulator suspended its “no pay, no service” directive.
NCAA’s action has pulled the industry back from the brink of a potential operational showdown with domestic carriers, who are already battling several crises, especially the rising cost of aviation fuel.
NCAA announced the decision on Sunday in a statement signed by its Director-General, Capt. Chris Najomo, effectively halting an enforcement move that had threatened to disrupt airline operations nationwide.
The directive, which had earlier placed the affected carriers on a compliance watchlist for failing to remit statutory charges, required the withdrawal of key regulatory and administrative services until outstanding debts were cleared.
It was designed to force defaulting airlines to either settle their obligations or agree to structured repayment plans.
However, in a swift policy reversal, the NCAA said it had reconsidered its stance following “extensive consultations” across the aviation industry and a fresh assessment of the harsh operating climate facing airlines.
“The Nigeria Civil Aviation Authority wishes to inform stakeholders in the aviation industry that the previously communicated enforcement of the ‘no pay, no service’ directive in respect of certain airlines with outstanding statutory remittances has been temporarily suspended,” the statement read.
The dispute is anchored statutory charges, particularly the 5 per cent Ticket Sales Charge and Cargo Sales Charge, collected by airlines on behalf of the regulator.
The NCAA stressed that these funds are not part of airline revenues but are critical to sustaining safety oversight, personnel training, and economic regulation across the sector.
Despite the suspension, the Authority was emphatic that the move does not erase the debts.
It noted that all outstanding obligations remain valid and enforceable, signalling that airlines are still expected to meet their financial commitments under agreed timelines.
The now-paused enforcement action traces back to an internal memo dated May 22, 2026, which directed all NCAA directorates to deny services to 11 airlines over unpaid remittances.
The order, signed by the Director of Finance and Accounts, Olufemi Odukoya, effectively tightened regulatory pressure by requiring financial clearance before any services could be rendered to the affected operators.
Airlines caught in the regulatory net include Air Peace, Ibom Air, Arik Air, United Nigeria Airlines, Max Air, Caverton Helicopters, Overland Airways, Rano Air, ValueJet, NG Eagle, and Umza Air.
The directive had sparked anxiety across the aviation ecosystem, with stakeholders warning that grounding essential regulatory services could trigger widespread flight disruptions and further strain an already fragile industry.
The NCAA’s decision to suspend enforcement appears to acknowledge those concerns, particularly as airlines grapple with surging Jet A1 fuel prices, one of the most significant cost drivers in the sector.
In recent months, operators have repeatedly raised alarms over the sustainability of their businesses, citing volatile fuel costs, foreign exchange pressures, and mounting operational expenses.
The federal government has responded with a series of relief measures aimed at stabilising the industry.
In April 2026, President Bola Tinubu approved a 30 per cent reduction in statutory fees owed by airlines to key aviation agencies.
The relief package covers obligations to agencies such as the Federal Airports Authority of Nigeria and the Nigerian Airspace Management Agency, and is intended to ease liquidity pressures and reduce the risk of operational shutdowns.
In parallel, the Nigerian Midstream and Downstream Petroleum Regulatory Authority introduced indicative pricing for aviation fuel, while airlines were granted a 30-day credit window for Jet A1 purchases, measures aimed at cushioning the impact of spiralling fuel costs.
For now, industry stakeholders say the NCAA’s latest move offers temporary breathing space for embattled airlines, but the underlying tensions remain unresolved.
They noted that with debts still hanging and operating costs stubbornly high, the fragile truce between regulator and operators may yet face another test in the months ahead.
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