The Nigeria Civil Aviation Authority has suspended plans to enforce its proposed “no pay, no service” directive against domestic airlines over alleged unpaid statutory charges, following fresh consultations with operators in the aviation sector.

Director-General of Civil Aviation, Chris Najomo, said the temporary suspension followed extensive stakeholder engagements and a review of the current realities in the industry, particularly the rising cost of Jet A1 aviation fuel.

The NCAA had earlier issued a memo on May 22 placing at least 11 domestic carriers, including Air Peace, Ibom Air, Arik Air, United Nigeria Airlines and Max Air, on a “no pay, no service” list over mounting debts.

According to the regulator, the suspension does not amount to a waiver or cancellation of the outstanding obligations, stressing that all affected airlines remain responsible for settling their debts. The authority added that it would continue structured engagements with operators to ensure compliance without disrupting flight operations nationwide.

The NCAA also defended the controversial five per cent Ticket and Cargo Sales Charge, describing it as a statutory levy backed by the Civil Aviation Act and collected by airlines on behalf of the aviation ecosystem to support regulatory oversight and aviation services.

“The charge is not part of airline revenue or operating profit and should not be treated as such,” the authority stated, adding that the NCAA operates on a cost-recovery basis and relies on statutory remittances to sustain safety and regulatory functions.

The regulator further recalled that President Bola Ahmed Tinubu had previously approved a 30 per cent discount on outstanding charges owed by domestic airlines to aviation agencies as part of efforts to cushion the impact of high fuel costs on operators.

However, the Airline Operators of Nigeria rejected the NCAA’s debt claims, insisting that all regulatory services rendered to airlines are fully paid for in advance under a cash-before-service arrangement.

In a statement, the operators clarified that the disputed sums relate only to the five per cent Ticket Sales Charge and not to unpaid regulatory service fees. According to the group, airlines are invoiced for every regulatory activity, including licence validations, aircraft inspections and document renewals, with payments made before services are rendered.

The airline operators argued that describing them as indebted for regulatory services was misleading and inaccurate, maintaining that the Ticket Sales Charge is a tax imposed on passengers rather than a payment for services directly provided to airlines.

AON further disclosed that it had formally appealed to the Federal Government through the office of the Minister of Aviation and Aerospace Development for a temporary suspension of all statutory charges to help airlines manage cash flow challenges caused by the soaring cost of Jet A1 fuel.

“Notwithstanding this arrangement, the AON had formally appealed to the federal government through the office of Minister of Aviation & Aerospace Development, to suspend the payment of all statutory charges temporarily, as an interim measure to assist airlines in managing their cash flows during the current period of severe financial stress caused by the increase in the cost of Jet A1,” the statement read.

The operators acknowledged President Tinubu’s approval of a 30 per cent concession on outstanding charges but noted that they had also sought a meeting with the President to discuss additional relief measures, a request they said was yet to be granted.

“The AON reiterates its position that the NCAA is a regulatory body, not a revenue-generating agency. The NCAA does not fund any aspect of our businesses or render any direct service to passengers,” the group stated.

AON also renewed its call for an amendment to the Civil Aviation Act to empower the NCAA to directly collect any applicable fees and charges from passengers or other relevant parties without routing the process through domestic airlines, proposing that the arrangement should take effect from June 1, 2026.