Regulatory agency takes action against 11 carriers for unpaid dues

The Nigerian Civil Aviation Authority, NCAA, has issued a directive to its various directorates, instructing them to suspend services to 11 domestic airlines that have yet to settle their outstanding financial obligations.

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This move was prompted by a memo dated May 22, 2026, from the Director of Finance and Accounts, Olufemi Odukoya, which outlined the affected airlines, including Air Peace Limited, Ibom Air Limited, Arik Air Limited, United Nigeria Airlines, Umza Air, NGeagle Airline, Max Air Limited, Caverton Helicopters, Overland Airways, Rano Air, and ValueJet.

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The memo, titled 'Updated List of Airlines on No-Pay-No-Service,' explicitly stated that the Director-General of the NCAA, Capt Chris Najomo, has ordered that no services be rendered to these airlines without prior financial clearance from the Directorate of Finance and Accounts.

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According to an aviation consultant, Adeola Fadairo, the NCAA's decision is not only justified but also long overdue, as the airlines' failure to remit funds is a breach of public trust and corporate responsibility.

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Fadairo emphasized that the five per cent Ticket Sales Charge, TSC, is a statutory levy paid by passengers and collected by airlines in trust for the regulator, which should be remitted promptly and transparently to the NCAA.

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Fadairo further argued that collecting these statutory charges from passengers and deliberately failing to remit them to the NCAA constitutes a grave abuse of public trust and corporate responsibility, with no airline having the authority to appropriate funds meant for aviation safety oversight and other regulatory purposes.

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Fadairo dismissed the argument that remitting these obligations could worsen the financial condition of airlines, describing it as untenable, and emphasizing the importance of prioritizing aviation safety oversight, consumer protection, and regulatory efficiency.