The aviation sector may experience disruption in services over the No-pay, no-service order on most of the 11 domestic airlines by the Nigeria Civil Aviation Authority (NCAA). The development followed the NCAA’s decision to issue the order over unpaid statutory charges and regulatory fees owed to the authority, Daily Trust reports.
In an internal memo dated May 22, 2026, the NCAA directed all its directorates and regional offices to suspend regulatory services to the affected operators until they obtain financial clearance from the authority’s Directorate of Finance and Accounts.
The memo, signed by the Director of Finance and Accounts, Olufemi Odukoya, was copied to the Director-General of Civil Aviation, regional managers and other senior officials of the authority.
Airlines affected by the directive include Air Peace, Ibom Air, Arik Air, United Nigeria Airlines, Umza Air, NG Eagle, Max Air, Caverton Helicopters, Overland Airways, Rano Air and ValueJet.
However, it was learnt that discussions are already underway between the airlines and the NCAA to work out repayment arrangements that would allow essential regulatory services to continue while the debts are gradually settled.
Airlines pay different charges to the NCAA for various services including issuance of permits, inspection of aircraft and certification.
The airlines also remit the statutory five per cent ticket sale charge and cargo sale charge (TSC/CSC) to the NCAA for onward distribution to other beneficiary agencies.
Overtime, airlines have always been at loggerheads with the regulator over mounting debt forcing the NCAA to adopt stringent measures including a pay-as-you-go scheme to reduce airlines’ debt.
Though the actual debt being owed the NCAA is not in the public domain, it runs into billions of naira. This is in addition to other debts owed to other agencies like the Federal Airports Authority of Nigeria (FAAN) and the Nigerian Airspace Management Agency (NAMA).
It would be recalled that the federal government recently waived 30 per cent of airlines’ debts to mitigate the rising operational costs faced by the airline following the spike in price of aviation fuel also known as Jet A1.
Sources however stated that the debt waiver is yet to be implemented amidst ongoing reconciliation by agencies and the airlines.
But the stakeholders within the aviation sector expressed concern that the planned suspension of NCAA services could disrupt critical operational processes such as aircraft inspections, airworthiness certification renewals, crew licensing, operational approvals and other regulatory requirements necessary for safe and uninterrupted flight operations.
According to sources familiar with the development, many domestic carriers are currently battling severe financial pressure arising from rising aviation fuel prices, foreign exchange constraints, multiple taxes and charges as well as weak passenger spending.
However, the current memo by the NCAA may worsen the crisis faced by airlines, according to analysts.
But some of the airlines have initiated discussion with the regulator. At least three airline operators who spoke with our correspondent on the condition of anonymity confirmed the ongoing talks.
“Yes we are meeting with the NCAA,” one operator said, adding, “I will update you after the meeting.” Another senior executive of one of the airlines said, “Yes I can confirm to you that our people are meeting the NCAA and so far nothing has been done in terms of disrupting our operations and our flights are still running normally.”
An aviation analyst, Capt. Alex Nwuba in a chat with our correspondent said the memo is tantamount to putting the airlines in “a pressure mode.”
“So, it is not the motive of the NCAA to close down the industry, rather it may be an attempt to force them to the table to have a conversation,” he said.
Credit: Daily Trust
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