NCAA sanctions 11 airlines over unpaid debts, orders suspension of services

The Nigerian Civil Aviation Authority (NCAA) has placed 11 domestic airline operators on a “no-pay-no-service” sanction list over outstanding financial obligations owed to aviation agencies.

The directive, which was reportedly issued by the Director-General of Civil Aviation (DGCA), was communicated through an internal memo dated May 22 and signed by the NCAA’s Director of Finance and Accounts, Olufemi Odukoya.

According to the memo, all directorates within the aviation regulatory body have been instructed to suspend the provision of services to the affected airlines until they obtain financial clearance from the authority’s finance department.

“The DGCA has directed that no directorate should render any service to the above airlines without financial clearance from the Director of Finance & Accounts,” the memo stated.

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

The development marks a major move by the NCAA to enforce financial compliance within the aviation sector amid growing concerns over mounting debts owed by domestic airline operators.

Industry stakeholders say the decision could affect operational activities of the listed airlines if the outstanding obligations are not settled promptly.

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The action also comes weeks after the Aviation Ground Handlers Association of Nigeria (AGHAN) issued a final three-day ultimatum to airlines over unpaid debts.

AGHAN had warned that ground handling services would be withdrawn from defaulting operators beginning May 6 if outstanding payments were not made.

The association had expressed concerns over the financial burden placed on service providers due to delayed payments by airline operators.

Meanwhile, the Federal Government had earlier moved to ease the financial pressures facing domestic airlines.

On April 23, President Bola Ahmed Tinubu approved a 30 percent discount on debts owed by domestic airlines to aviation agencies as part of efforts to support the sector.

Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed that the debts covered several categories of operational charges owed by airlines.

According to him, the liabilities include parking charges payable to the Federal Airports Authority of Nigeria (FAAN), navigational charges owed to the Nigerian Airspace Management Agency (NAMA), as well as other statutory fees.

The aviation minister explained that the debt relief initiative was intended to help operators stabilize their operations while encouraging compliance with financial obligations.

Despite the concession granted by the Federal Government, concerns remain over the financial health of several domestic carriers operating in Nigeria’s aviation industry.

Analysts have noted that rising operational costs, foreign exchange challenges, high maintenance expenses and multiple regulatory charges continue to put pressure on airline operators.

Stakeholders in the sector are now urging both regulators and operators to engage in constructive dialogue aimed at preventing disruptions to flight operations while ensuring compliance with industry regulations.

The NCAA’s latest action is expected to intensify efforts toward improving financial discipline and accountability within Nigeria’s aviation sector.