NCAA gives airlines 90-day grace period on advance payment guarantees

By Nnasom David

The Nigeria Civil Aviation Authority (NCAA) has granted domestic airlines a 90-day grace period on the implementation of Advance Payment Guarantees (APGs) aimed at ensuring timely remittance of the statutory five per cent Ticket Sales Charge (TSC).

The decision followed a high-level engagement between the aviation regulator and the Airline Operators of Nigeria (AON) held on Monday, 2 February 2026, at the NCAA’s corporate headquarters in Abuja.

The meeting was convened after the AON formally requested clarification on the NCAA’s directive requiring airlines to provide bank-backed APGs. According to the Authority, the guarantees are designed to safeguard passenger-derived statutory funds, which airlines collect in trust on behalf of the aviation system.

Addressing airline operators, the Director-General of Civil Aviation, Capt. Chris Najomo, said the policy was rooted in the Civil Aviation Act 2022 (as amended) and aimed at strengthening financial discipline within the sector.

“The five per cent Ticket Sales Charge is a cost-recovery mechanism that supports aviation safety oversight, economic regulation and inter-agency responsibilities,” Najomo said.

Capt. Najomo expressed concern over persistent delays by some operators in remitting statutory charges, noting that such lapses had disrupted regulatory funding and weakened oversight effectiveness.

He stressed that the APG policy was not punitive but intended to serve as a compliance assurance mechanism.

“In an industry where safety and regulatory effectiveness are non-negotiable, predictable funding is essential. Advance Payment Guarantees are globally recognised tools for mitigating financial risks associated with statutory collections,” he said.

In recognition of the financial and operational challenges facing airlines, the NCAA approved a 90-day deferment of the APG requirement.

The grace period is expected to allow operators regularise outstanding remittances and align with the new framework without disrupting flight operations.

The Director-General urged airlines to make full use of the window, reiterating the Authority’s commitment to balancing regulatory enforcement with ease of doing business.

“Our responsibility is to protect passenger funds while ensuring a sustainable and compliant aviation industry,” Najomo added.

Responding on behalf of the Airline Operators of Nigeria, the Chief Executive Officer of Overland Airways, Capt. Edward Boyo, commended the NCAA for its openness to dialogue and engagement.

He assured the regulator that all Air Operator Certificate holders remained committed to meeting their statutory obligations.

“We appreciate the consultative process and the 90-day grace period granted by the NCAA. Airlines will use this opportunity to settle outstanding liabilities and comply fully with the new requirements,” Boyo said.

The engagement was attended by senior NCAA officials, including 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 Director of Legal Services and Company Secretary, Barr. Mary Tufano-Eche.

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