NCAA and Airlines Face N20 Billion Debt Crisis

The Nigerian Civil Aviation Authority (NCAA) is currently addressing a significant debt impasse with domestic airlines, which reportedly owe N20 billion. This debt has accrued from a statutory 5% ticket sale charge and cargo sale charge, which airlines collect on behalf of the NCAA.

The financial strain has intensified due to a spike in aviation fuel prices, which rose from N900 to N3,500 per liter amid geopolitical tensions in the Middle East. Consequently, airlines are facing operational challenges, including high bank loan interest rates of 30%, making it difficult to remit the owed funds to the NCAA.

The NCAA is considering introducing a fixed rate for ticket purchases instead of the current percentage model. Commodore Ademola Onitiju (rtd), the NCAA's advisory body president, noted that the existing system has flaws, as airlines have become tax collectors rather than service providers, leading to a backlog of debts and disputes over collections.