NCAA suspends 'no-pay, no-service' directive for 11 airlines
NCAA suspends 'no-pay, no-service' directive against 11 domestic airlines after just two days, citing rising aviation fuel costs. The directive originally issued May 22 by Director-General Chris Najomo would have withheld regulatory services from Air Peace, Ibom Air, Arik Air, United Nigeria Airlines, Max Air, Rano Air, NG Eagle, ValueJet, Overland Airways, Umza Air and Caverton Helicopters until outstanding statutory remittances were paid.
The suspension comes amid industry concerns about airlines' ability to operate, particularly with Jet A1 fuel prices climbing. NCAA clarified this doesn't cancel or forgive debts – airlines still owe statutory charges including the mandatory 5% Ticket and Cargo Sales Charge from passenger and cargo sales.
Federal government has approved 30% discount on charges owed by domestic airlines to aviation agencies, including NCAA, as part of efforts to cushion fuel price impacts. The regulator will continue engaging affected airlines individually to recover debts while maintaining operational stability across the sector.
With aviation fuel continuing to rise, will domestic airlines absorb these costs through ticket price increases, cut services, or seek additional government intervention?