The Nigerian Civil Aviation Authority (NCAA) has placed 11 domestic airlines on its updated “No-Pay-No-Service” list over unpaid statutory charges, a move that could disrupt access to critical regulatory and administrative services for the affected operators.
The enforcement action targets airlines that have failed to remit outstanding statutory fees to the regulator. Under the directive, airlines must either settle their debts or agree on payment plans before services are restored. The affected carriers include Air Peace, Ibom Air, Arik Air, United Nigeria Airlines, Umza Air, NG Eagle, Max Air, Caverton Helicopters, Overland Airways, Rano Air, and ValueJet.
According to an internal memo dated May 22, 2026, and obtained by our correspondent, all NCAA directorates have been instructed to withhold services from the listed airlines pending financial clearance from the Directorate of Finance and Accounts. The memo was signed by the Director of Finance and Accounts, Olufemi Odukoya, and circulated to regional offices and senior officials, including the Director-General of Civil Aviation.
At the centre of the dispute are the five per cent Ticket Sales Charge (TSC) and Cargo Sales Charge (CSC), levies collected by airlines on behalf of the NCAA. The charges are intended to fund safety oversight, personnel training, and economic regulation within Nigeria’s aviation sector.
The directive has raised concerns among stakeholders, with fears that the suspension of regulatory support services could lead to operational disruptions, flight delays, and broader consequences for the aviation industry.
Defending the decision, NCAA Director-General, Chris Najomo, said the authority recognises the difficult economic conditions facing airlines but cannot compromise its financial obligations. He warned that the continued failure to remit statutory charges could undermine the regulator’s ability to maintain safety oversight, risk-based surveillance, and compliance with international aviation standards.
The memo stated, “The DGCA has directed that no directorate should render any service to the above airline without financial clearance from the director of finance and accounts.”
Reacting to the development, Chief Executive Officer of Ibom Air, George Uriesi, argued that the challenges confronting airlines stem from a harsh operating environment rather than poor financial management. He said soaring aviation fuel prices have significantly disrupted airline business models and placed immense pressure on operators.
Explaining the situation, Uriesi said, “People, this matter is quite simple. When fuel, which under normal circumstances is 36-40 per cent of your operating costs, triples in price within the space of five weeks and stays there, your business model is turned upside down. The costs of purchasing fuel to keep flying suddenly take virtually all the sales you’re making on a daily basis. This forces a change in how you allocate your working capital.”
He further noted that airlines have had little choice but to prioritise essential operational expenses. “Once you cannot pay for fuel and maintenance, you cannot fly, no matter your emotions. And once you cannot fly, you cannot pay anybody anyway. It’s the oxygen mask theory,” Uriesi added.
The Ibom Air boss maintained that the NCAA memo demonstrates that most domestic carriers are facing similar financial difficulties, contrary to the perception that some operators are weathering the economic storm more effectively. He urged the public not to criticise airlines, stressing that many continue to operate despite shrinking profit margins and mounting losses.
Also commenting on the situation, former Rector of the Nigeria College of Aviation Technology, Samuel Caulcrick, questioned the long-term sustainability of Nigeria’s domestic aviation industry. He argued that the challenges extend far beyond the five per cent Ticket Sales Charge, citing inflation, foreign exchange volatility, weak passenger demand, and multiple regulatory fees as major threats. According to him, “The question is no longer whether airlines can survive the TSC. It’s whether the environment itself allows any airline to survive.
Aviation fuel, landing, and parking fees consume the bulk of revenue. On some routes, airlines are left with net profits as low as N8 per passenger per kilometre. At that level, a single delay or cancellation can erase the margin for an entire flight.”