Airlines of Nigeria Address Regulatory Fees with NCAA
The Airlines of Nigeria (AON) has firmly denied making any cost recovery payments to the Nigerian Civil Aviation Authority (NCAA). The organization emphasized that all regulatory services provided to national airlines are prepaid in full on a cash basis prior to the service being rendered.
According to a statement from AON, Nigeria’s domestic airlines are required to settle full invoices issued by the NCAA before availing themselves of any NCAA-regulated services. The association suggested that there has been a misunderstanding regarding the nature of charges owed to the NCAA by national airlines.
AON clarified that what the NCAA refers to as “unpaid charges” actually pertains to the 5 percent ticket sales charge (TSC) imposed on passengers— a tax inconsistent with international aviation regulations. The organization is advocating for amendments to the Civil Aviation Act that would empower the NCAA to collect fees directly from passengers, alleviating the financial strain on airlines that currently act as intermediaries.
The proposed changes, if implemented by June 1, 2026, would address the financial burdens airlines face in transferring the TSC funds to the NCAA, as they incur additional costs for bank transfers and various transaction fees in this process.
AON reiterated its stance that the NCAA’s role is that of a regulatory body, not a revenue-generating entity. According to the statement, all services provided by the NCAA to airlines will be prepaid, ensuring there are no outstanding payments at the time of service delivery.
The AON statement also mentioned that several member airlines maintained dedicated accounts from which the NCAA originally debited monthly fees. However, this arrangement was disrupted due to the ongoing financial pressures stemming from the Iran-Israel/American conflict, which has affected airlines globally.
Reacting to claims that airlines owe billions to the NCAA, AON noted that the 5 percent TSC was introduced more than 45 years ago under the administration of General Gowon. It highlighted that the relevance of this charge has not been re-examined since its inception. This longstanding policy aims to fund airport maintenance and operations, reflecting a historical context where only foreign airlines were subject to this charge. As the industry evolved, diverse taxes and fees emerged, yet the 5 percent TSC persisted despite opposition from AON and other stakeholders.
