NCAA Suspends 'No Pay, No Service' Directive for Airlines

The Nigerian Civil Aviation Authority (NCAA) announced a temporary suspension of its "No Pay, No Service" directive aimed at enforcing compliance from airlines regarding outstanding statutory remittances. This decision, communicated in Abuja on Monday, was influenced by ongoing consultations and the rising costs of aviation fuel affecting airline operations across Nigeria.

The NCAA clarified that this suspension does not equate to a waiver or cancellation of debts; airlines remain fully responsible for settling their outstanding statutory obligations. President Bola Tinubu had previously approved a 30 percent discount on outstanding fees owed by domestic airlines as part of measures to alleviate the impact of high jet fuel costs on the aviation sector.

The NCAA also reiterated that a five percent charge on ticket and cargo sales remains a statutory requirement under the Civil Aviation Act, which airlines must collect and remit accordingly. The NCAA emphasized that the temporary suspension is calibrated to avoid disrupting the aviation industry while ensuring airlines eventually fulfill their financial obligations.