NCAA suspends sanctions on 11 airlines over unpaid statutory fees amid jet fuel crisis

The Nigerian Civil Aviation Authority (NCAA) has temporarily suspended the enforcement of its “No Pay, No Service” directive against 11 domestic airlines over outstanding statutory remittances, citing the rising cost of aviation fuel and the need to preserve stability in the country’s aviation sector.

The regulatory authority disclosed this in a statement issued on Monday, explaining that the decision followed extensive consultations with stakeholders and a review of the operational realities facing domestic carriers.

The NCAA, however, stressed that the suspension does not amount to a waiver, cancellation, or forgiveness of the debts owed by the affected operators.

It stated that all airlines involved remain fully responsible for settling their outstanding obligations, adding that the authority would continue structured engagements with the operators to ensure compliance while avoiding disruptions to air travel services.

The affected airlines include Air Peace Limited, Ibom Air Limited, Arik Air Limited, United Nigeria Airlines, Umza Air, NG Eagle, Max Air Limited, Caverton Helicopters, Overland Airways, Rano Air and ValueJet.

The regulator had earlier placed the airlines on an updated “No-Pay-No-Service” list over unpaid statutory remittances owed to the authority and other aviation agencies.

“The temporary suspension of the ‘no pay, no service’ measure is a calibrated step aimed at maintaining operational stability within the sector while continued engagement is pursued toward full settlement of outstanding obligations,” the authority stated.

An internal memo dated May 22, 2026, had directed all NCAA directorates to deny services to the affected airlines unless clearance was obtained from the Directorate of Finance and Accounts.

According to the authority, the temporary suspension became necessary due to the mounting pressure on operators from the high cost of Jet A1 fuel and concerns over the broader stability of the aviation industry.

The NCAA recalled that President Bola Ahmed Tinubu had already approved a 30 per cent discount on outstanding fees owed by domestic airlines to aviation agencies as part of efforts to cushion the effect of rising aviation fuel prices and sustain airline operations.

Read also: NCAA suspends its ‘No Pay, No Service’ directive for local carriers

The authority explained that the intervention, announced earlier by the Minister of Aviation and Aerospace Development, forms part of the Federal Government’s broader strategy to stabilise the sector and prevent operational disruptions.

Reaffirming its position on the statutory remittances, the NCAA emphasised that the five per cent Ticket and Cargo Sales Charge is a legally backed component of Nigeria’s aviation financing system under the Civil Aviation Act.

It noted that the charge is collected by airlines at the point of ticket and cargo sales on behalf of the aviation ecosystem and is not part of the airlines’ operational revenue or profit.

According to the regulator, the remitted funds are shared among key aviation institutions responsible for maintaining safe, efficient and internationally compliant air transport operations.

The NCAA further stated that, as a cost-recovery agency that does not receive direct federal funding for its daily regulatory functions, the statutory charges remain critical to sustaining aviation oversight and safety responsibilities.

It added that the temporary suspension of the enforcement measure was a “calibrated step” designed to strike a balance between regulatory enforcement and the need to keep the aviation industry functioning smoothly.

The NCAA maintained that airlines that have already collected the statutory charges from passengers and cargo operators must remit the funds for their intended regulatory purposes.

“It is important to state clearly that this suspension does not represent a cancellation, waiver, or forgiveness of outstanding statutory financial obligations, as such decision is beyond the purview of the Authority.

“It would be recalled that His Excellency, President Bola Ahmed Tinubu GCFR, in his magnanimity, already approved a 30% discount on such outstanding fees owed by domestic airlines to aviation agencies, including NCAA.

“All affected operators, therefore, remain fully responsible for the settlement of their statutory debts, and the NCAA will pursue structured engagements with airlines individually, to ensure recovery in a manner that supports both compliance and sector stability,” the statement read