NCAA Engages AON on Advance Payment Guarantees to Enforce 5% Ticket Sales Charge Remittance
The Nigeria Civil Aviation Authority (NCAA) has commenced formal engagements with the Airline Operators of Nigeria (AON) over the introduction of Advance Payment Guarantees (APGs) as part of renewed efforts to ensure the prompt remittance of the statutory five per cent Ticket Sales Charge (TSC) by airline operators.
The high-level meeting, held on Monday, 2 February 2026, at the Authority’s Corporate Headquarters in Abuja, followed a request by the AON seeking clarification on the requirement for airlines to provide bank-backed APGs.
The engagement formed part of the NCAA’s responsibility to safeguard funds collected from passengers on behalf of the Nigerian aviation system.
Speaking at the meeting, the Director-General of Civil Aviation (DGCA), Captain Chris Najomo, explained that the NCAA derives its powers from the Civil Aviation Act (CAA) 2022 (as amended) to collect the five per cent TSC on a cost-recovery basis.
He noted that the charge represents funds paid by passengers and held in trust by airlines, which are subsequently remitted to the Authority for equitable distribution among key aviation agencies responsible for safety, security and regulatory oversight.
Captain Najomo expressed concern over persistent delays in remittances by some airline operators, stressing that such lapses undermine the financial stability required for effective regulation of the aviation sector.
He clarified that the proposed introduction of Advance Payment Guarantees is not intended to stifle airline operations, but rather to strengthen compliance, improve remittance timelines and provide predictable funding for the NCAA to discharge its statutory responsibilities.
Following extensive deliberations with airline representatives, the DGCA approved a 90-day deferment of the APG requirement. The grace period is aimed at giving airline operators sufficient time to regularise outstanding remittances and align with the new compliance framework.
He urged operators to take full advantage of the deferment window to settle their obligations, while reiterating the Authority’s commitment to maintaining industry stability and promoting ease of doing business, without compromising its legal mandate to protect public funds and regulate the sector effectively.
Responding on behalf of the AON, the Chief Executive Officer of Overland Airways, Captain Edward Boyo, commended the NCAA for the open and constructive engagement.
He assured the Authority that all Air Operator Certificate (AOC) holders would utilise the deferment period to meet their financial obligations and ensure full compliance with the remittance requirements.
The meeting was attended by key officials of the NCAA, including the Director of Operations, Licensing and Training Standards, Captain Donald Spiff; the Director of Air Transport Regulation, Mrs Olayinka Babaoye-Iriobe; the Director of Finance and Accounts, Mr Olufemi Odukoya; and the Director of Legal Services and Company Secretary, Barrister Mary Tufano-Eche.
