NCAA Suspends Services To 11 Airlines Over Debts

The Nigerian Civil Aviation Authority (NCAA) has directed all its departments and regional offices to suspend services to 11 domestic airlines over unpaid financial obligations owed to the regulator.

The directive was conveyed in an internal memo dated 22 May and signed by the NCAA’s Director of Finance and Accounts, Olufemi Odukoya. The memo instructed all directorates to place the affected airlines on a “no-pay-no-service” arrangement until they obtain financial clearance from the Directorate of Finance and Accounts.

Airlines affected by the directive include Air Peace, Ibom Air, Arik Air, United Nigeria Airlines, Max Air, Rano Air, NG Eagle, ValueJet, Overland Airways, Umza Air, and Caverton Helicopters.

The memo was also copied to the Director-General of Civil Aviation (DGCA) and other senior officials of the authority.

Under the directive, the airlines may be denied access to certain regulatory services pending the settlement of their outstanding obligations to the NCAA.

The development comes amid growing financial challenges facing domestic airline operators, including rising aviation fuel costs, foreign exchange constraints, and increasing operational expenses across the aviation sector.

Industry stakeholders have expressed concerns that the move could further affect airline operations if the situation remains unresolved for an extended period.

The NCAA depends on statutory charges and service-related payments from airlines to fund its oversight responsibilities, inspections, and other regulatory activities.

In recent months, several local airlines have struggled with operational disruptions linked to soaring Jet A1 fuel prices, aircraft maintenance issues, and limited fleet availability.

Some carriers, including Rano Air, have reportedly adjusted schedules and suspended routes due to the increasing cost of operations.

The latest directive highlights the mounting financial pressure within Nigeria’s aviation industry as operators continue to grapple with high operating costs and declining passenger purchasing power.