NCAA Suspends No-Pay, No-Service Order for Airlines

The Nigerian Civil Aviation Authority (NCAA) has announced a temporary suspension of its "no pay, no service" enforcement order directed against domestic airlines, which was aimed at addressing outstanding statutory remittances. This decision, signed by Director General Chris Najomo, follows extensive consultations within the aviation sector to assess the prevailing industry realities.

The suspension is intended to protect operational stability amid rising aviation fuel prices and foreign exchange instability that have increased operational costs for airlines. However, the NCAA clarified that this suspension does not equate to a cancellation or waiver of outstanding debts owed by airlines.

Earlier, President Bola Ahmed Tinubu approved a 30% discount on outstanding fees owed by domestic airlines as part of measures to cushion the impact of high jet A1 prices. The NCAA emphasized that affected airlines must continue to settle their statutory obligations and engage in debt recovery without crippling the sector.