The Nigeria Civil Aviation Authority (NCAA) Monday engaged Airline Operators of Nigeria (AON) on Advance Payment Guarantees to ensure timely remittance of the five per cent Ticket Sales Charge.
To this end, the agency granted a 90-day deferment to improve compliance and protect aviation funds.
The NCAA noted that the stakeholders meeting was another decisive step to strengthen financial discipline in the aviation on the proposed implementation of Advance Payment Guarantees (APGs) to ensure prompt remittance of the statutory 5 per cent Ticket Sales Charge (TSC).
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, the authority, added was intended to allow operators regularise outstanding remittances and align with the new compliance framework without disrupting operations.
The high-level engagement with the Airline Operators of Nigeria (AON) took place 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, was 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).
Najomo explained that the five 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.
He expressed deep concern that delays in remittances by some operators have continued to disrupt funding flows and weaken regulatory effectiveness.
Najomo 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.
According to him, In an industry where safety and regulatory effectiveness are non-negotiable, predictable funding is essential.
Najomo said APGs are a globally recognised instrument for mitigating financial risks associated with statutory collections.
He, however, 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.
Similarly, the Executive Officer of Overland Airways, Capt. Edward Boyo, lauded the NCAA for its consultative approach and openness to dialogue.
Bayo 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.