Stop collecting charges through airlines, AON tells FG

The Airline Operators of Nigeria (AON) has called on the Federal Government to urgently amend the Civil Aviation Act to empower the Nigeria Civil Aviation Authority (NCAA) to collect whatever appropriate fees and charges due to it directly from passengers without routing such through the domestic airlines. The AON representing domestic airlines operating in Nigeria […]

The Airline Operators of Nigeria (AON) has called on the Federal Government to urgently amend the Civil Aviation Act to empower the Nigeria Civil Aviation Authority (NCAA) to collect whatever appropriate fees and charges due to it directly from passengers without routing such through the domestic airlines.
The AON representing domestic airlines operating in Nigeria requested that this should take effect from June 1, 2026, insisting that the aviation regulator should no longer use operators as collection agents.
The operators also dismissed claims that domestic airlines were indebted to the NCAA for regulatory services rendered, describing recent reports on alleged outstanding payments as misleading and inaccurate.
Daily Trust reports that the statement by AON was in response to the recent decision by the NCAA to place no fewer than 11 operators on ‘a no-pay, no service’ condition following what it called mounting indebtedness.
Though the NCAA had backtracked on the directive contained in a May 22, 2026 memo, the AON formally replied to the NCAA, describing the claim of indebtedness as ‘factually incorrect.’
In a strongly worded statement, the association said: “The AON wishes to make it clear that all cost recovery services rendered by the NCAA to domestic airline operators are paid for fully in advance on a cash-before-service basis.”
The group explained that under existing procedures, the NCAA invoices airlines for every regulatory activity carried out on their behalf, including aircraft inspections, crew licence validations, and renewal of operational documents, adding that no service is rendered until payment is made.
“For clarity, the NCAA issues an invoice for every regulatory service it provides, whether for the validation of crew operating licences, aircraft inspections, documentation renewals, or any other service within its regulatory mandate,” the statement read.
According to the association, the claims of indebtedness being referred to by the NCAA relate only to the statutory five per cent Ticket Sales Charge imposed on passengers and not due to unpaid regulatory service fees.
“What the NCAA refers to as ‘outstanding charges’ relates solely to the five percent (5%) Ticket Sales Charge (TSC), a tax imposed by the NCAA on passengers for no services rendered to passengers,” AON said.
Over time the NCAA collects five per cent ticket sale charge and cargo sale charge (TSC/CSC) from airlines for onward distribution to other beneficiary aviation agencies.

However, the operators argued that the TSC arrangement was outdated and inconsistent with international aviation best practices, insisting that the NCAA should collect the charges directly from passengers or through another independent process instead of routing them through domestic airlines.

“The AON reiterates its position that the NCAA is a regulatory body, not a revenue-generating agency. The NCAA does not fund any aspect of our businesses or render any direct service to passengers,” the statement added.

The airlines therefore urged the Federal Government to amend the Civil Aviation Act to empower the NCAA to independently collect any fees or charges due to it.

The group proposed that the arrangement should take effect from June 1, 2026, noting that airlines currently bear the burden of bank transfer charges and other transaction costs associated with remitting the funds to the regulator.

AON further disclosed that several member airlines had maintained dedicated accounts from which the NCAA directly draws its remittances monthly. However, the operators said worsening financial pressures caused by rising aviation fuel costs and global geopolitical tensions had made the arrangement increasingly difficult to sustain.

The association specifically cited the impact of the Iran-Israel-United States conflict on global fuel prices and airline operations worldwide.

“Several member airlines maintain dedicated accounts, from which the NCAA draws down its monthly remittances, until the force majeure caused by the Iran-Israel/USA conflict, that had put a lot of financial pressures on airlines worldwide,” the statement said.

According to the operators, the difficult operating environment forced the association to appeal to the Federal Government through the Minister of Aviation and Aerospace Development for temporary relief from statutory charges.

The airlines revealed that President Bola Ahmed Tinubu had approved a 30 per cent concession as an interim measure pending further consideration of their broader requests.