Nigeria - Boubacar Sani

The Nigerian Civil Aviation Authority has decided to suspend the implementation of its controversial "No Payment, No Service" policy, which targeted local airlines that were late in paying fees owed to aviation authorities and agencies.

The decision, according to what was announced by the Director General of the Nigerian Civil Aviation Authority, Captain Chris Nagumo, came after extensive consultations with local airlines, in addition to a review of the growing challenges facing the sector, most notably the sharp rise in Jet A1 jet fuel prices. .

The Nigerian Civil Aviation Authority temporarily reverses its decision to suspend services to civilian companies.

This development comes days after reports that at least 11 airlines had been placed on a watch list due to accumulated unpaid statutory fees. The list included prominent carriers such as Air Peace, Ibom Air, Arik Air, United Nigeria Airlines, Max Air, Overland Airways, and Caferton. .

Sources in the aviation sector revealed that the affected companies rushed to open channels of negotiation with the regulatory authority, which resulted in a temporary suspension of the enforcement procedures that threatened to disrupt some of the services provided to those companies.

Despite the temporary reversal, the Nigerian Civil Aviation Authority stressed that the decision does not mean the cancellation of debts or the waiving of accumulated financial dues, confirming that all concerned companies are still obligated to pay the legal fees due in full.

The authority explained that discussions with airlines will continue within a structured framework aimed at ensuring financial compliance, while avoiding any potential disruptions to air traffic within the country.

The agency also noted that Nigerian President Bola Ahmad Tinubu had earlier approved a 30% discount for domestic airlines on overdue fees, a move aimed at easing increasing financial pressures on companies, especially with rising fuel costs.

The authority defended the ticket sales and shipping fees of 5%, stressing that they are legal fees stipulated by the Civil Aviation Law, and are collected by airlines for the benefit of the aviation sector, and are not part of the operating profits of the companies.

The authority confirmed that it relies on a cost recovery model without direct government funding to cover its daily operations, making the commitment of airlines to pay fees essential to maintaining air traffic control and safety services.

The authority concluded its statement by emphasizing that the suspension of the decision reflects an attempt to strike a balance between imposing fiscal discipline and ensuring the stability of the Nigerian aviation sector, while continuing to prioritize the collection of outstanding debts.