NCAA Raises Alarm Over Airlines' Delayed Remittance of Ticket Sales Charges, Warns of Aviation Safety Risks
NCAA Raises Alarm Over Airlines' Delayed Remittance of Ticket Sales Charges, Warns of Aviation Safety Risks
By [Your Name] | February 13, 2025
The Nigeria Civil Aviation Authority (NCAA) has issued a stern warning to domestic airlines over their persistent failure to remit the 5% Ticket Sales Charge (TSC) and Cargo Sales Charge (CSC) on time. The aviation regulator stressed that these delays are severely impacting its ability to deliver essential services, train personnel, and implement long-term financial planning—jeopardizing Nigeria’s aviation safety and regulatory framework.
Financial Strain on NCAA: A Looming Crisis
The NCAA heavily depends on the timely remittance of TSC and CSC by airlines to fund critical operations. The authority allocates these funds towards:
- Regulatory Oversight & Service Delivery – Ensuring timely safety inspections and compliance enforcement.
- Staff Training & Development – Equipping personnel with updated global aviation best practices.
- Infrastructure & Long-Term Planning – Investing in enhanced aviation safety frameworks and air traffic management.
However, according to Captain Chris Najomo, the Director General of the NCAA, continuous delays in remittances are crippling the agency’s ability to sustain efficient oversight and ensure industry-wide compliance.
“The NCAA cannot perform optimally if airlines do not comply with remittance obligations. These funds are not optional; they are legally required contributions that sustain the sector’s operational integrity,” Najomo said.
Airlines Accused of Non-Compliance, Underreporting Sales
The NCAA disclosed that many airlines underreport their ticket sales or fail to remit funds within the stipulated time frame. Some operators still rely on manual documentation, which allows discrepancies and revenue leakages.
Under Part 18 of the Nigeria Civil Aviation Regulations, airlines must submit relevant documents—including flown coupons, passenger manifests, and air waybills—within 48 hours after each flight. The regulation also mandates a Tripartite Direct Debit Agreement to ensure automatic deduction of the 5% TSC at the point of sale. However, many airlines continue to circumvent this process, leading to revenue shortfalls that hinder NCAA’s financial stability.
NCAA's Regulatory Crackdown: Penalties for Defaulting Airlines
With mounting concerns over revenue losses, the NCAA has vowed to take tougher enforcement actions against defaulting airlines.
“If airlines continue to breach remittance agreements, we will have no choice but to impose fines, revoke licenses, or take legal action,” Najomo warned.
As part of its regulatory framework, the NCAA has outlined severe penalties for non-compliant airlines, including:
- Hefty Fines – Airlines failing to remit TSC/CSC may face significant financial penalties.
- License Suspension or Revocation – Continued violations could result in a suspension of operating permits.
- Legal Action & Industry Blacklisting – Airlines that persistently evade compliance may face lawsuits or restrictions from aviation authorities.
Industry analysts warn that if regulatory enforcement remains weak, Nigeria’s aviation sector risks financial instability, reduced investor confidence, and potential safety breaches.
The Way Forward: Calls for Transparency & Technological Innovation
To address the growing crisis, the NCAA is advocating for automated revenue tracking systems to curb underreporting and remittance delays.
“We must transition to a fully digitalized financial monitoring system. Airlines should embrace automated payment solutions to eliminate loopholes and enhance compliance,” Najomo added.
Industry stakeholders have also suggested a collaborative approach, urging airlines and regulators to establish stricter monitoring mechanisms, real-time reporting systems, and harsher penalties for defaulters.
The ongoing issue of delayed ticket sales charge remittances by airlines is more than a financial challenge—it is a direct threat to aviation safety and regulatory efficiency. The NCAA’s latest warnings signal a potential crackdown on non-compliant airlines, with stricter penalties expected in the coming months.
As Nigeria’s aviation sector strives for global competitiveness and regulatory credibility, compliance with financial obligations will be a defining factor in sustaining the industry’s growth and operational excellence.
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