Aviation

Why we suspended Debt Recovery For Domestic Airlines – NCAA

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The Nigeria Civil Aviation Authority has paused its strict enforcement of the “No-pay, No-service” rule against domestic airlines that still owe statutory payments. The move is aimed at reducing pressure on operators who are already facing heavy financial stress in Nigeria’s aviation sector.

The decision was made after discussions within the industry and a review of current economic problems affecting airline operations. Rising aviation fuel costs, unstable foreign exchange rates, and higher maintenance expenses have continued to affect airline performance.

According to the Director-General of the NCAA, Chris Najomo, the step is meant to support stability in the sector while ensuring that airlines continue to meet their obligations in a structured way.

The authority noted that the suspension is not a cancellation of debts. It also made its position clear in a statement, saying, “This decision follows extensive consultations within the sector and a careful review of current operating realities, particularly the rising cost of aviation fuel and its impact on airline operations and overall industry stability,”

The NCAA further stated, “It is important to state clearly that this suspension does not represent a cancellation, waiver, or forgiveness of outstanding statutory financial obligations as such decision is beyond the purview of the Authority.”

It also referred to earlier government support measures, including a 30 per cent reduction on certain charges approved under President Bola Tinubu’s administration to ease pressure from high Jet A1 fuel costs.

The regulator added, “This relief, as contained in a statement by the Honourable Minister of Aviation and Aerospace Development, is part of Federal Government’s broader efforts to cushion the impact of the high cost of Jet A1 fuel, stabilize the aviation industry and safeguard airline operations.

“All affected operators, therefore, remain fully responsible for the settlement of their statutory debts, and the NCAA will pursue structured engagements with airlines individually, to ensure recovery in a manner that supports both compliance and sector stability,” the authority stated.

It also explained that the temporary pause is meant to balance enforcement with stability in air transport operations.

“The temporary suspension of the ‘no pay, no service’ measure is a calibrated step aimed at maintaining operational stability within the sector while continued engagement is pursued toward full settlement of outstanding obligations,” the NCAA said.

Despite the relief, airlines are still required to settle their debts, while discussions between the regulator and operators will continue.

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