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NCAA Engages Airlines Over Advance Payment Guarantees, Grants Temporary Extension NCAA Engages Airlines Over Advance Payment Guarantees, Grants Temporary Extension

The Nigeria Civil Aviation Authority (NCAA) has initiated high-level discussions with the Airline Operators of Nigeria (AON) to address concerns surrounding the recently introduced Advance Payment Guarantees (APG). This compliance measure, aimed at tightening the remittance of the statutory 5 per cent Ticket Sales Charge (TSC), seeks to ensure greater accountability by requiring airlines to provide bank-backed guarantees for passenger funds collected on behalf of the aviation system.

The meeting, held on Monday, February 2, 2026, at NCAA’s headquarters in Abuja, was convened after AON requested clarity and further dialogue on the new directive. Addressing airline executives, the Director-General of Civil Aviation, Capt. Chris Najomo, emphasized that the APG is not intended to penalize operators but to protect passenger funds and ensure the smooth functioning of Nigeria’s aviation sector.

Under the Civil Aviation Act 2022 (as amended), the NCAA is authorized to collect the 5 per cent TSC, which represents funds paid by passengers and held in trust by airlines before being remitted to the Authority. These funds are critical for supporting the operations of key aviation agencies responsible for oversight, safety, and regulation.

However, Capt. Najomo expressed frustration with delays by some airlines in fulfilling their remittance obligations. He highlighted that the APG framework is designed to introduce discipline and predictability into the system, ensuring that funds are remitted on time, compliance is measurable, and aviation regulators are not left underfunded in their efforts to oversee the sector effectively.

In a move to balance firmness with flexibility, the NCAA has granted a 90-day deferment of the APG requirement. This temporary extension offers airlines a grace period to regularize outstanding remittances and align with the new compliance measures. Capt. Najomo urged operators to use this window effectively, reiterating the NCAA’s commitment to maintaining stability in the sector while upholding its statutory responsibilities.

Representing the AON, Capt. Edward Boyo, CEO of Overland Airways, expressed appreciation for the deferment and pledged that all Air Operator Certificate (AOC) holders would utilize the period to settle their financial obligations and comply with the new requirements. He acknowledged the importance of working collaboratively to strengthen the aviation industry.

Senior NCAA officials in attendance included Capt. Donald Spiff, Director of Operations, Licensing and Training Standards; Mrs. Olayinka Babaoye-Iriobe, Director of Air Transport Regulation; Mr. Olufemi Odukoya, Director of Finance and Accounts; and Barr. Mary Tufano-Eche, Director of Legal Services and Company Secretary.

The introduction of the APG measure reflects a broader effort to enhance transparency and accountability in Nigeria’s aviation sector. While the deferment provides temporary relief for airlines, it also signals the NCAA’s resolve to enforce compliance and secure the financial stability of the industry. For stakeholders across the African aviation ecosystem, this development underscores the importance of robust regulatory frameworks in ensuring the sustainability of the region’s air transport sector.