Why the NCAA Gave Nigerian Airlines a 90-Day Break on Bank Guarantees

The Nigeria Civil Aviation Authority (NCAA) has granted domestic airlines a 90-day grace period. This deferment applies to the new rule requiring Advance Payment Guarantees (APGs). The APGs are meant to ensure timely remittance of the statutory five per cent Ticket Sales Charge (TSC).

This decision followed a high-level meeting in Abuja. The aviation regulator met with the Airline Operators of Nigeria (AON) on Monday, February 2, 2026. The meeting was called after AON asked for clarification on the new APG directive.

Strengthening Financial Discipline

The NCAA stated the APGs are designed to protect passenger-derived statutory funds. Airlines collect these funds in trust for the entire aviation system. The policy is part of a broader effort to strengthen financial discipline.

Director-General of Civil Aviation, Capt. Chris Najomo, confirmed the policy’s foundation. It is rooted in the Civil Aviation Act 2022 (as amended). He noted the five per cent TSC is a cost-recovery mechanism. This charge supports essential aviation safety oversight and economic regulation.

Capt. Najomo expressed concern over persistent delays by some operators. These lapses in remitting statutory charges disrupt regulatory funding. This ultimately weakens oversight effectiveness, he explained. The APG policy is not punitive. It is intended to serve as a compliance assurance mechanism.

• Predictable funding is essential for regulatory effectiveness.
• Advance Payment Guarantees (APGs) are globally recognized tools.
• They mitigate financial risks linked to statutory collections.

The 90-Day Deferment

In recognition of industry challenges, the NCAA approved a 90-day deferment. This grace period will allow operators to regularize outstanding remittances. It also provides time to align with the new financial framework. The goal is to achieve compliance without disrupting flight operations.

The Director-General urged airlines to fully utilize this window. He reiterated the Authority’s commitment. The NCAA aims to balance regulatory enforcement with ease of doing business. Najomo added that their responsibility is to protect passenger funds. They must also ensure a sustainable and compliant aviation industry.

Industry Response and Commitment

Speaking for the Airline Operators of Nigeria, Capt. Edward Boyo responded. Boyo is the Chief Executive Officer of Overland Airways. He commended the NCAA for its openness to dialogue. He assured the regulator that all Air Operator Certificate holders are committed to their statutory obligations.

“We appreciate the consultative process,” Boyo stated. “Airlines will use this opportunity to settle outstanding liabilities.” They also commit to fully comply with the new requirements. The engagement included senior NCAA officials, highlighting the policy's importance. This high-level dialogue underscores the regulator’s move toward a "Zero Debt Strategy" first announced in late 2025.

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