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Home » NCAA Halts ‘No Pay, No Service’ Sanctions Against Indebted Airlines
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NCAA Halts ‘No Pay, No Service’ Sanctions Against Indebted Airlines

May 25, 2026No Comments3 Mins Read
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The Nigeria Civil Aviation Authority (NCAA) has temporarily suspended enforcement of its controversial “no pay, no service” directive against 11 domestic airlines over unpaid statutory remittances owed to the regulator.

The suspension was announced on Sunday in a statement signed by Capt. Chris Najomo, Director-General of Civil Aviation.

The move comes days after the NCAA issued an internal directive placing the affected airlines on an updated compliance list and ordering the withdrawal of regulatory and administrative services until outstanding debts were settled.

According to the NCAA, the enforcement policy was originally introduced to improve compliance with statutory remittances collected by airlines on behalf of aviation agencies.

The regulator said the measure was intended to compel defaulting airlines to either clear outstanding obligations or agree to structured repayment plans.

“The Nigeria Civil Aviation Authority wishes to inform stakeholders in the aviation industry that the previously communicated enforcement of the ‘no pay, no service’ directive in respect of certain airlines with outstanding statutory remittances has been temporarily suspended,” the statement read.

The Authority explained that the decision followed extensive consultations with stakeholders in the aviation industry and a review of prevailing operational challenges, especially the soaring cost of aviation fuel and its impact on airline sustainability.

Despite the suspension, the NCAA stressed that the move does not amount to a waiver of debts.

The Authority maintained that all outstanding obligations remain valid and enforceable.

It clarified that the statutory charges in question, including the five per cent Ticket Sales Charge and Cargo Sales Charge, are collected by airlines on behalf of the regulator and are not part of airline operating revenue.

According to the NCAA, the remittances are critical to funding safety oversight, personnel training, and economic regulation across Nigeria’s aviation sector.

The controversy stems from an internal memo dated May 22, 2026, which directed all NCAA directorates to suspend services to 11 domestic airlines over unpaid statutory remittances.

The memo instructed departments to withhold regulatory and administrative services from affected airlines until their debts were cleared or financial clearance was obtained from the Directorate of Finance and Accounts.

Airlines listed in the directive include:

  • Air Peace Limited
  • Ibom Air Limited
  • Arik Air Limited
  • United Nigeria Airlines
  • Max Air Limited
  • Caverton Helicopters
  • Overland Airways
  • Rano Air
  • ValueJet
  • NG Eagle
  • Umza Air

The directive heightened concerns across the industry over possible operational disruptions and further strain on domestic airline operators already grappling with high operating costs.

 

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Elvis Eromosele

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