NCAA, AON Agree on 90-Day Grace Period for 5% Ticket Sales Charge

Director-General of Civil Aviation (DGCA), Capt. Chris Najomo, has explained that the Nigeria Civil Aviation Authority (NCAA) is empowered under the Civil Aviation Act (CAA) 2022 (as amended) to collect the statutory 5 per cent Ticket Sales Charge (TSC) on a cost-recovery basis, and that the funds represent money paid by passengers and held in trust by airlines for remittance to the Authority for distribution among key aviation agencies.

He made this known during a meeting between the NCAA and the Airline Operators of Nigeria (AON) held on Monday, 2 February 2026, at the Authority’s Corporate Headquarters in Abuja, and the engagement focused on the implementation of Advance Payment Guarantees (APGs) as a mechanism to ensure timely remittance of the TSC.

The DGCA expressed deep concern over persistent delays in remittances by some operators, and noted that the introduction of bank-backed APGs is aimed at strengthening compliance, improving remittance timelines, and ensuring predictable funding for effective regulation across the aviation sector.

The meeting followed a request by AON for clarification on the APG requirement, and the DGCA emphasised that the measure aligns with the Authority’s responsibility to safeguard funds collected from passengers on behalf of the Nigerian aviation system.

Following extensive discussions, the DGCA approved a 90-day deferment of the APG requirement to allow airline operators to regularise outstanding remittances, and he urged operators to fully utilise the grace period while reiterating the NCAA’s commitment to industry stability and ease of doing business without compromising its statutory mandate.

Responding on behalf of AON, the Chief Executive Officer of Overland Airways, Capt. Edward Boyo, commended the Authority for the engagement, and pledged that all Air Operator Certificate (AOC) holders would meet their financial obligations within the deferment period.

Officials present at the meeting included the Director, Operations, Licensing and Training Standards, Capt. Donald Spiff; the Director, Air Transport Regulation, Mrs. Olayinka Babaoye-Iriobe; the Director, Finance and Accounts, Mr. Olufemi Odukoya; and the Director, Legal Services/Company Secretary, Barr. Mary Tufano-Eche.

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