NCAA Gives Airlines 90 Days as 5% Ticket Sales Charge Enforcement Tightens

The Nigeria Civil Aviation Authority (NCAA) has taken another decisive step to strengthen financial discipline in the aviation sector, engaging the Airline Operators of Nigeria (AON) on the proposed implementation of Advance Payment Guarantees (APGs) to ensure prompt remittance of the statutory 5 per cent Ticket Sales Charge (TSC).

The high-level engagement took place on Monday, 2 February 2026, at the Authority’s Corporate Headquarters in Abuja, amid growing regulatory concern over persistent delays by some airlines in remitting passenger-derived statutory charges.

The meeting followed a formal request by the AON, seeking clarification on the NCAA’s directive requiring airlines to provide bank-backed APGs. The measure, according to the regulator, is aimed at safeguarding funds collected from passengers on behalf of the Nigerian aviation system—funds that airlines merely hold in trust before remitting them for statutory distribution.

Addressing airline operators, the Director-General of Civil Aviation (DGCA), Capt. Chris Najomo, underscored that the NCAA’s position is firmly grounded in the Civil Aviation Act (CAA) 2022 (as amended). He explained that the 5 per cent Ticket Sales Charge is a cost-recovery mechanism designed to fund aviation safety oversight, economic regulation, and inter-agency responsibilities critical to the sustainability of the sector.

Capt. Najomo expressed deep concern that delays in remittances by some operators have continued to disrupt funding flows and weaken regulatory effectiveness. He noted that the introduction of Advance Payment Guarantees is not intended as a punitive tool, but rather as a compliance assurance mechanism to improve remittance timelines, promote transparency, and provide predictable funding for aviation regulation.

“In an industry where safety and regulatory effectiveness are non-negotiable, predictable funding is essential,” the DGCA stated, adding that APGs are a globally recognised instrument for mitigating financial risks associated with statutory collections.

However, in recognition of the current operational and financial pressures faced by airlines, the NCAA approved a 90-day deferment of the APG requirement. The grace period is intended to allow operators regularise outstanding remittances and align with the new compliance framework without disrupting operations.

The DGCA urged airlines to take full advantage of the deferment window, reiterating the Authority’s commitment to balancing regulatory enforcement with ease of doing business, while remaining resolute in its statutory obligation to protect passenger funds.

Responding on behalf of the Airline Operators of Nigeria, the Chief Executive Officer of Overland Airways, Capt. Edward Boyo, commended the NCAA for its consultative approach and openness to dialogue. He assured the regulator that all Air Operator Certificate (AOC) holders are committed to meeting their financial obligations and will utilise the 90-day period to settle outstanding liabilities.

The engagement attracted senior management of the NCAA, highlighting the strategic importance of the issue. Officials in attendance included the Director of Operations, Licensing and Training Standards, Capt. Donald Spiff; Director of Air Transport Regulation, Mrs. Olayinka Babaoye-Iriobe; Director of Finance and Accounts, Mr. Olufemi Odukoya; and the Director of Legal Services and Company Secretary, Barr. Mary Tufano-Eche.
Industry observers note that the renewed focus on APGs reopens a longstanding conversation about accountability, transparency, and trust in Nigeria’s aviation value chain. As the deferment period runs, stakeholders will be watching closely to see whether the engagement marks a turning point toward improved compliance and a more resilient funding framework for aviation safety and regulation in Nigeria.

The NCAA has engaged Airline Operators of Nigeria on Advance Payment Guarantees to ensure timely remittance of the 5% Ticket Sales Charge, granting a 90-day deferment to improve compliance and protect aviation funds.