The Airline Operators of Nigeria (AON) has dismissed claims that domestic airlines owe the Nigeria Civil Aviation Authority (NCAA) for regulatory services, insisting that all payments for such services are made upfront under a strict cash-before-service policy.

In a statement issued in Lagos on Monday, the association said Nigerian airlines do not receive any regulatory approvals or operational services from the NCAA without first settling the required fees.

According to AON, the NCAA invoices operators for services such as crew licence validation, aircraft inspections, and renewal of operational documentation, all of which are paid in advance.

“In practice, no domestic airline in Nigeria receives NCAA regulatory services without first making full payments,” the statement said.

The association argued that reports suggesting airlines were indebted to the NCAA were “factually inaccurate,” clarifying that the disputed issue relates instead to the five per cent Ticket Sales Charge (TSC) imposed on passengers.

AON described the TSC as a passenger tax rather than a payment for regulatory services.

“What the NCAA refers to as ‘outstanding charges’ relates solely to the five per cent Ticket Sales Charge (TSC), a tax imposed by NCAA on passengers for no services rendered to passengers,” the association stated.

Airlines Cite Financial Pressure

The operators said several airlines previously maintained dedicated accounts through which the NCAA deducted monthly remittances. However, the association said the arrangement was disrupted by global aviation pressures linked to the Iran-Israel-U.S. conflict and the resulting rise in operational costs.

AON noted that domestic carriers were facing severe financial strain due to the escalating price of Jet A1 aviation fuel and broader economic pressures.

The group said it had appealed to the Federal Government through the office of the Minister of Aviation and Aerospace Development for a temporary suspension of statutory charges to help airlines stabilise their cash flow.

According to the association, President Bola Tinubu has already approved a 30 per cent concession, while discussions continue on other intervention measures requested by operators.

Call for Reform of Ticket Sales Charge

The association also urged the Federal Government to amend the Civil Aviation Act to allow the NCAA collect passenger-related charges directly, instead of routing collections through airlines.

AON argued that airlines currently shoulder unnecessary banking and transaction costs while acting as collection agents for the regulator.

The group traced the origin of the five per cent Ticket Sales Charge to policies introduced more than four decades ago under the administration of former Head of State, General Yakubu Gowon.

According to AON, the aviation industry has since evolved significantly, with multiple agencies now charging separate levies and fees for their services.

The association maintained that the continued application of the TSC places an additional burden on local operators already struggling with high operating costs.

Industry Calls for Urgent Policy Intervention

AON warned that mounting taxes, levies and regulatory charges were threatening the sustainability of Nigeria’s aviation sector.

“The aviation sector is crucial to the economy as a catalyst and enabler for economic growth. The survival of the sector therefore demands urgent and deliberate policy action,” the association said.

The operators called on the Federal Government to comprehensively review all levies imposed on domestic airlines, arguing that the current framework is unsustainable amid global economic and geopolitical shocks.