AON Rejects NCAA Debt Claims, Pushes for TSC Reform
By Admin, Lagos May 25, 2026
The Airline Operators of Nigeria has rejected claims that domestic airlines owe regulatory service debts to the Nigeria Civil Aviation Authority, insisting that all cost recovery services provided by the agency are paid for upfront.
The association said airlines operate under a strict “cash-before-service” arrangement, stressing that no operator receives approvals, inspections, licence renewals, or other regulatory services without full payment.
“The AON wishes to make it clear that all cost recovery services rendered by the NCAA to domestic airline operators are paid for fully in advance,” the group stated.
According to the association, the alleged debts being referenced by the NCAA relate mainly to the 5 per cent Ticket Sales Charge (TSC) and Cargo Sales Charge (CSC), which airlines collect on behalf of the aviation system, and not unpaid regulatory services.
AON argued that the ongoing dispute is more about tax collection than cost recovery, adding that airlines still pay separately for services provided by aviation agencies, including the NCAA.
“The NCAA is a regulatory body, not a revenue-generating agency,” the association said.
The body also blamed rising operational costs, foreign exchange challenges, and high Jet A1 prices for the financial strain facing domestic carriers, noting that previous remittance arrangements became difficult to sustain.
Meanwhile, the association called for reforms in the collection of Ticket Sales Charges, urging the Nigerian Government to adopt a Billing Settlement Plan-style system that would allow automatic remittance of charges at source.
AON further appealed for amendments to the Civil Aviation Act to empower the NCAA to collect passenger-related charges directly, rather than through airlines acting as collection agents.
“The aviation sector is crucial to the economy as a catalyst and enabler for economic growth,” the association added.