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Nigeria’s NCAA Pauses ‘No Pay, No Service’ Policy for Airlines

The Nigeria Civil Aviation Authority (NCAA) has suspended the enforcement of its “No Pay, No Service” sanction against domestic airlines indebted to aviation agencies, citing ongoing consultations with stakeholders and worsening economic pressures in the aviation sector.

The regulator said the decision was influenced by harsh operating conditions affecting airlines, particularly the rising cost of aviation fuel (Jet A1) and broader financial challenges facing operators. The policy had earlier targeted airlines owing statutory charges to aviation agencies.

Earlier on, the NCAA initially placed at least 11 airlines on a “No Pay No Service” list through an internal memo dated May 22, 2026. The directive reportedly affected operators including Air Peace, Ibom Air, Arik Air, United Nigeria Airlines, Max Air, Caverton Helicopters, Overland Airways, Rano Air, ValueJet, NG Eagle, and Umza Air, restricting access to regulatory services over unpaid obligations.

However, in a subsequent statement signed by Director-General Capt. Chris Najomo, the NCAA clarified that the suspension does not cancel or waive outstanding debts. The agency stressed that all affected airlines remain fully liable for statutory charges and that repayment discussions will continue on a structured basis.

The NCAA also reaffirmed that the six per cent Ticket and Cargo Sales Charge remains a statutory deduction used to fund aviation regulatory operations, noting that the agency operates on a cost-recovery basis. It added that the temporary suspension is intended to stabilize the sector amid ongoing economic challenges, including high fuel costs, forex volatility, and rising operational expenses.