NCAA Halts ‘No-Pay, No-Service’ Rule to Protect Industry Stability

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The Nigeria Civil Aviation Authority has suspended its “No-pay, No-service” directive against domestic airlines in a move aimed at protecting operational stability in the aviation sector. Director-General Chris Najomo said the decision followed consultations with stakeholders and a review of current realities, including rising aviation fuel costs, foreign exchange challenges, and increasing operational expenses.

The regulator emphasized that the suspension does not amount to cancellation or forgiveness of debts owed by airlines. Najomo explained that the 5 percent Ticket and Cargo Sales Charge is a statutory fee under the Civil Aviation Act, collected by airlines on behalf of the aviation ecosystem and shared among service providers to sustain safe and efficient operations.

The NCAA recalled that President Bola Tinubu had earlier approved a 30 percent discount on outstanding fees owed by airlines to aviation agencies as part of efforts to cushion the impact of high Jet A1 fuel prices. The authority said this intervention is part of broader government measures to stabilize airline operations and prevent disruptions.

Officials noted that all affected airlines remain responsible for settling their obligations, with structured engagements planned to ensure recovery without crippling the sector. Najomo stressed that the NCAA operates on a cost-recovery basis and does not receive direct federal funding, making statutory charges critical for regulatory oversight.

Industry stakeholders have welcomed the suspension, warning that strict enforcement could have worsened financial strain and forced some airlines out of operation. The regulator described the move as a balancing act designed to protect both regulatory integrity and the survival of the industry.

The NCAA said the temporary suspension is a calibrated step to maintain stability while continuing discussions with operators toward full settlement of outstanding debts.

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