NCAA Suspends “No Pay, No Service” Enforcement After Industry Consultations

…Says directive temporarily halted but debts not waived

The Nigeria Civil Aviation Authority (NCAA) has temporarily suspended enforcement of its “No Pay, No Service” directive that would have halted regulatory and administrative services to 11 domestic airlines over unpaid statutory remittances.

In a statement signed by the director general Capt. Chris Najomo on Sunday night, the regulator said the pause followed extensive consultations with stakeholders across the aviation sector and a review of prevailing operating conditions — particularly the rising cost of Jet A1 fuel and its impact on airline sustainability.

“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 NCAA said.

The authority stressed that the suspension does not amount to a waiver: “All outstanding obligations remain valid and enforceable,” the statement added, and carriers are expected to engage on repayment arrangements.

An internal memo dated 22 May 2026, circulated by the Directorate of Finance and Accounts, had placed 11 carriers on an updated compliance list and ordered that no directorate should render regulatory or administrative services to listed airlines without financial clearance.

The move was intended to compel defaulting operators to either settle outstanding statutory remittances or agree structured repayment plans.

The statutory levies at the centre of the dispute include the five per cent Ticket Sales Charge and the Cargo Sales Charge.

These charges are collected by airlines on behalf of aviation agencies and, the NCAA said, do not form part of airline operating revenue.

Funds are used to support safety oversight, personnel training and economic regulation, and are distributed across key regulatory agencies responsible for maintaining industry standards.
Airlines affected

The earlier memo named the following operators: Air Peace, Ibom Air, Arik Air, United Nigeria Airlines, Max Air, Caverton Helicopters, Overland Airways, Rano Air, ValueJet, NG Eagle and Umza Air.

The administrative hold threatened to tighten regulatory pressure and raised concerns of potential disruption to services if enforcement had continued.

The NCAA said the decision to suspend enforcement followed “extensive consultations within the aviation sector” and a practical review of operators’ cashflows in the present environment.
The regulator highlighted that soaring Jet A1 prices have significantly increased operational costs for carriers, squeezing liquidity and making immediate full remittance challenging for some operators.

The NCAA emphasised that the suspension is temporary and that outstanding debts remain enforceable. The regulator expects affected airlines to either clear their arrears or enter into agreed repayment plans with the Directorate of Finance and Accounts. Failure to reach durable agreements could see enforcement measures reinstated.
Industry sources say further meetings between airline executives, the NCAA and relevant government agencies are likely in the coming days to finalise repayment frameworks and coordinate any additional support measures.