NCAA grants airlines 90-day grace period on advance payment guarantees for 5% ticket sales charge
Abdullateef Fowewe
The Nigeria Civil Aviation Authority (NCAA) met with the Airline Operators of Nigeria (AON) on Monday, at its Corporate Headquarters in Abuja to address delays in remitting the statutory 5% Ticket Sales Charge (TSC).
The engagement focused on implementing Advance Payment Guarantees (APG) to ensure airlines promptly remit passenger funds held in trust.
Director-General of Civil Aviation, Capt. Chris Najomo, in a statement shared by NCAA emphasised the NCAA’s mandate under the Civil Aviation Act (CAA) 2022 (as amended), stating: “The NCAA is empowered to collect the 5% TSC on a cost-recovery basis, representing funds paid by passengers and held in trust by airlines for remittance to the Authority for sharing among key aviation agencies.”
Najomo expressed concern over persistent delays, noting that “the introduction of APGs is intended to strengthen compliance, improve remittance timelines, and ensure predictable funding for effective regulation across the aviation sector.”
After discussions, he approved a 90-day deferment, urging operators to regularise outstanding payments.
“He, therefore, urged operators to take full advantage of the grace period and reiterated the Authority’s commitment to maintaining industry stability and ease of doing business without compromising its statutory mandate,” the statement added.
AON’s representative, Capt. Edward Boyo, CEO of Overland Airways, responded positively, “Expressed appreciation to the Authority for the engagement and pledged that all Air Operator Certificate (AOC) holders would meet their financial obligations within the deferment period.”
NCAA officials present included Capt. Donald Spiff (Director, Operations, Licensing and Training Standards), Mrs. Olayinka Babaoye-Iriobe (Director, Air Transport Regulation), Mr. Olufemi Odukoya (Director, Finance and Accounts), and Barr. Mary Tufano-Eche (Director, Legal Services/Company Secretary).
The move aims to balance regulatory enforcement with airline viability amid ongoing industry challenges.
