NCAA ticket charges dispute deepens as domestic airlines reject remittance claims and demand reforms in aviation fee collection
A growing dispute between the Nigerian Civil Aviation Authority and domestic airlines over the remittance of statutory ticket charges has intensified concerns about transparency, regulatory consistency and long-term stability within Nigeria’s aviation sector.
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The controversy escalated after a leaked internal memo proposed a no-pay-no-service directive that would reportedly deny regulatory services to airlines accused of failing to remit the five per cent Ticket Service Charge collected from passengers.
Shortly after the memo surfaced, Director General of the NCAA, Capt Chris Najomo, announced a temporary suspension of the proposed directive while urging airlines to settle outstanding remittances linked to the statutory charge.
However, the Airline Operators of Nigeria strongly rejected claims that domestic carriers owed the regulator for services rendered, insisting that all NCAA services are prepaid under a strict cash-before-service arrangement.
The airline body maintained that the NCAA ticket charges dispute relates solely to the remittance of Ticket Service Charges and not unpaid regulatory services.
According to the operators, domestic airlines merely act as collection agents for the regulator, a responsibility they argue falls outside the operational mandate of commercial airlines.
The Airline Operators of Nigeria subsequently urged the Federal Government to amend the Civil Aviation Act to empower the NCAA to collect charges directly from passengers beginning from June 1, 2026.
The operators argued that airlines currently bear unnecessary financial burdens, including banking transfer fees and transaction costs associated with remitting the charges to the regulator.
The association also stressed that the NCAA functions as a regulatory institution and not a revenue-generating agency.
Industry experts have backed the position of the airlines, warning that the disagreement reflects deeper structural inconsistencies within Nigeria’s aviation revenue framework.
Aviation analyst Amos Akpan described the arrangement as fundamentally flawed, arguing that airlines were not established to function as financial transaction institutions on behalf of government agencies.
“Collection of money for agencies is not the core business of an airline and is not stipulated in their manuals or operations specifications,” Akpan said.
He explained that forcing airlines to include the five per cent charge within ticket sales complicates financial management, especially as airlines contend with operational expenses such as fuel costs and aircraft maintenance.
Akpan added that aviation agencies should consider adopting direct collection systems similar to methods already used by the Federal Airports Authority of Nigeria for passenger service charges.
Another industry insider noted that several legacy debts still remain on the books of the NCAA from defunct carriers including Nigeria Airways, Okada Air and Bellview Airlines.
The source argued that withholding regulatory services from active airlines during a challenging economic period could further weaken the aviation industry instead of supporting growth and investor confidence.
The NCAA ticket charges dispute has also reignited debate over how aviation levies are collected globally compared to Nigeria’s percentage-based system.
Under Nigeria’s Civil Aviation Act 2006, airlines are required to remit five per cent of gross ticket sales to the NCAA, which subsequently distributes portions to agencies including the Nigerian Airspace Management Agency, Nigerian Meteorological Agency, Nigerian College of Aviation Technology and the Nigerian Safety Investigation Bureau.
However, a recent industry survey showed that most countries adopt flat passenger charges rather than percentage-based deductions tied directly to ticket value.
In the United Kingdom, Air Passenger Duty is charged as a fixed levy depending on travel distance and class, while Australia imposes a flat Passenger Movement Charge on departing passengers.
Similarly, Kenya, Ghana and the Philippines apply fixed passenger-related aviation fees rather than deductions based on airline revenue.
In the United States, although a 7.5 per cent excise tax applies to domestic tickets, the proceeds go into a national aviation trust fund rather than directly financing the aviation regulator.
Industry observers say Nigeria’s reliance on percentage-based ticket deductions continues to place additional pressure on airlines already grappling with high operating costs, foreign exchange challenges and infrastructure limitations.
At a recent aviation conference in Addis Ababa, the International Air Transport Association identified Nigeria among African countries with aviation charges significantly above global averages.
The organisation warned that excessive levies across the continent were discouraging investment, weakening competitiveness and increasing operational costs for airlines.
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Stakeholders now say resolving the NCAA ticket charges dispute will require clearer regulations, harmonised fee structures and improved accountability across the aviation value chain to prevent future conflicts and restore confidence in the sector.
