NCAA places Air Peace, Ibom Air, Arik Air, others on No-Pay-No-Service list over unpaid debt

Business Pointers

By Seun Ibiyemi

The Federal Government, through the Nigerian Civil Aviation Authority (NCAA), has directed all its directorates to suspend services to 11 domestic airlines over unpaid statutory charges owed to the regulator.

The NCAA also placed the affected operators on its updated “No-Pay-No-Service” list, following what it described as outstanding financial obligations due to the agency.

According to an internal memo issued by the Director of Finance and Accounts, Olufemi Odukoya, all departments were instructed to withhold regulatory and administrative services from the airlines until the debts are settled or formal repayment arrangements are agreed upon.

The directive is centered on the five per cent Ticket Sales Charge and Cargo Sales Charge, which airlines are mandated to collect on behalf of the NCAA to fund safety oversight, personnel training, and economic regulation in the aviation sector.

The memo further stated that no directorate should render any service to the affected airlines without prior financial clearance from the Directorate of Finance and Accounts.

It was circulated across regional offices and copied to the Director-General of Civil Aviation and other senior officials.

The airlines affected by the directive include Air Peace Limited, Ibom Air Limited, Arik Air Limited, United Nigeria Airlines, Umza Air, NG Eagle, Max Air Limited, Caverton Helicopters, Overland Airways, Rano Air, and ValueJet.

“We have directed that no directorate should render any service to the above airline without financial clearance from the director of finance and accounts,” the NCAA stated.

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