NCAA slams ‘no pay, no service’ sanction on debtor airlines due to N4bn in debt

Any local airlines that owe the authority would not be allowed to operate, according to Capt. Chris Najomo, the acting director general of the Nigerian Civil Aviation Authority (NCAA).

During a weekend media forum in Lagos, the NCAA president disclosed that the airline owes several billions of naira.
The amount that the carriers owed the agency and other parastatals was not disclosed by Najomo; however, as of August 2022, a minimum of 23 domestic airlines owed the Nigerian aviation agencies approximately N47 billion for various operational charges.

They also owed the Federal Airports Authority of Nigeria (FAAN) and the Nigerian Airspace Management Agency (NAMA) N18 billion and N5 billion, respectively, for the statutory five percent ticket sales charge and cargo sales charge (TSC/CSC), which they owed the NCAA.

He stated that any airline that did not pay off its debt would no longer be able to have its Air Operator Certificate (AOC) renewed.

According to him, the authority had already established a task force for debt recovery, whose purpose was to carry out its debt recovery initiative.
“All NCAA debtors are required to take possession of the authority’s services. There are now severe penalties for operators who don’t comply with its no-pay, no-service policy.

“We are stepping up our efforts to recover costs; currently, 50% of the funds go to the federal government.” We’ve been told by the airlines to make good on their debt to us. The cost recovery drive will be carried out by a joint task force dedicated to debt recovery, he continued.
The process of transforming the aviation industry has only just begun, according to Najomo, who also unveiled his agenda for the authority.

His goals for the year include, among other things, digital transformation, increased revenue drive, Universal Safety Audit, and ISO 9001 certification.

According to Najomo, the NCAA is dedicated to putting in place a streamlined certification/licensing system in order to expedite the approval procedure.

He says this will also apply to other permissions, authorizations, and approvals.

This approach is derived from the ease-of-doing-business philosophy, which aims to promote the expansion of the aviation sector.

The NCAA president revealed during a speech on consumer protection that consumer protection officers keep an eye on airline operations at every airport in Nigeria.

He went on to say that although some delays and cancellations are not the airlines’ fault, they will be held liable for their actions and paid in accordance with the law.

He alluded to creating a portal where travelers could register grievances for quick review and resolution.

Enforcing airlines’ adherence to Part 19 of the Nig. Cars 2023 (Consumer Protection Regulations) is crucial. We’ll make sure that passengers in the Nigerian aviation sector receive excellent care, that their rights are consistently upheld, and that airlines promptly attend to any service interruptions, he declared.