NCAA Suspends 'No Pay, No Service' Directive Amid Costs

The Nigerian Civil Aviation Authority (NCAA) has suspended its 'No Pay, No Service' directive after extensive consultations within the aviation industry, particularly in light of rising aviation fuel costs and their impact on airline operations. This suspension does not equate to a cancellation or waiver of airlines' statutory financial obligations.

The decision was made to stabilize the aviation sector, as emphasized by NCAA, which stated that airlines must remain responsible for settling their statutory debts. President Bola Ahmed Tinubu had previously approved a 30 percent discount on outstanding fees owed by domestic airlines to the aviation agency.

Festus Keyamo, the Minister of Aviation and Aerospace Development, is part of the federal government's efforts to mitigate the effects of high jet fuel costs. The NCAA clarified that the 5 percent ticket and cargo sale charge is a statutory requirement under the Civil Aviation Act and is not considered airline profit revenue.

The NCAA's decision aims to maintain operational stability within the aviation sector while ensuring regulatory compliance.