Nigeria’s aviation industry is witnessing growing tension following the decision by the Nigeria Civil Aviation Authority to place 11 domestic airlines on a “No-Pay-No-Service” list over unpaid statutory charges.
Some stakeholders have welcomed the action as a bold step to enforce discipline and accountability in the sector, others fear the move could worsen the financial troubles already facing local carriers.
While some industry voices insist airlines have no justification for withholding funds collected from passengers on behalf of the regulator, others argue the standoff exposes years of regulatory failure, worsening economic hardship and a fragile airline industry struggling to survive.
The controversy followed an internal NCAA memo dated May 22, 2026, directing all operational departments to deny services to affected airlines until they obtain financial clearance from the agency’s Directorate of Finance and Accounts.
Airlines listed include Air Peace, Ibom Air, Arik Air, United Nigeria Airlines, Max Air, Overland Airways, ValueJet, Rano and Umza air accused of failing to remit outstanding obligations to the regulator.
President of the Aircraft Owners Association of Nigeria, Dr. Alex Nwuba, said the confrontation reveals a deeper structural failure within Nigeria’s aviation system, arguing that both the airlines and the regulator share responsibility for the growing debt crisis.
According to him, airlines have for years relied on unremitted statutory charges as survival funds while the regulator tolerated the practice, effectively creating a dangerous dependency culture.
He warned that aggressively enforcing the policy against almost the entire domestic fleet could paralyse air transport nationwide, disrupt economic activities and weaken safety oversight if critical regulatory services become bargaining tools in financial disputes.
Dr. Nwuba also blamed soaring Jet A1 prices, foreign exchange volatility and high local borrowing rates for pushing airlines to the edge, stressing that the crisis cannot be solved through public confrontation but through coordinated intervention involving the NCAA, airline operators and the Ministry of Aviation.
But another stakeholder, Mr. Adeola Fadairo, backed the NCAA’s hardline stance, insisting the airlines have no legal or moral right to hold onto statutory charges collected from passengers.
He described the non-remittance of the five percent Ticket Sales Charge as a breach of public trust, arguing that financial hardship cannot justify the use of regulatory funds to support airline operations.
Mr. Fadairo maintained that the NCAA depends on those remittances to fund safety inspections, consumer protection and industry oversight, warning that weakening the regulator financially could ultimately endanger the entire aviation ecosystem.
He dismissed concerns that strict enforcement could cripple airlines, insisting that regulator compliance must remain non-negotiable if confidence in Nigeria’s aviation industry is to be preserved.
Reporting By Nosa Aituamen