The Nigeria Civil Aviation Authority (NCAA) has intensified efforts to secure timely remittance of the statutory 5% Ticket Sales Levy by engaging the Airline Operators of Nigeria (AON) on the use of Advance Payment Guarantees (APGs).
The Civil Aviation Act (CAA) has approved a 90-day deferment of the APG requirement, giving airlines a clear window to regularise outstanding payments while maintaining regulatory oversight.
The engagement, held on Monday, 2 February 2026, at NCAA’s Corporate Headquarters in Abuja, followed requests from AON for clarification on the APG requirement. This measure calls for bank-backed guarantees to ensure airlines remit the levy without delay, highlighting NCAA’s proactive approach to financial governance and sector accountability.
NCAA Strengthens 5% Levy Compliance
Speaking at the meeting, Director-General of Civil Aviation (DGCA), Capt. Chris Najomo, explained that the Civil Aviation Act (CAA) 2022 empowers the Authority to collect the levy on a cost-recovery basis. He emphasised that passenger funds collected by airlines are held in trust for onward sharing with regulatory and sectoral agencies.
“The introduction of Advance Payment Guarantees is intended to strengthen compliance, improve remittance timelines, and ensure predictable funding for effective sector regulation,” Najomo said, noting that some operators have consistently delayed remittances, creating tension in the aviation financial ecosystem.
The CAA-approved 90-day deferment provides the industry with room to adjust. Capt. Najomo explained that this period allows airlines to regularise outstanding payments without disrupting operations, demonstrating NCAA’s commitment to balancing enforcement with collaboration.
Responding on behalf of AON, Overland Airways CEO, Capt. Edward Boyo, welcomed the engagement and pledged that all Air Operator Certificate (AOC) holders would meet their obligations within the deferment period. The move reflects a collaborative approach, signalling willingness on both sides to maintain stability while upholding statutory duties.
Officials present from NCAA 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/Company Secretary. Their presence underscores NCAA’s multi-disciplinary approach to compliance and sector oversight.
Analysts note that the APG initiative goes beyond routine regulation, serving as a powerful financial governance tool. By linking airline obligations directly to bank-backed guarantees, NCAA mitigates risks associated with delayed levy remittances, which have previously threatened the smooth functioning of aviation agencies reliant on these funds.
The 90-day deferment also demonstrates NCAA’s balanced regulatory style. While airlines have time to meet obligations, the Authority signals that strict enforcement will follow if compliance is not achieved. For investors and passengers, this provides reassurance that levy funds are safeguarded and properly remitted.
Capt. Najomo’s leadership reinforces NCAA’s credibility. By combining firm enforcement with open dialogue, the Authority demonstrates that regulatory oversight can be exercised without compromising industry operations. Observers believe this approach may set a benchmark for other revenue streams within Nigerian aviation.
Airlines now face a clear deadline to comply, making remittance planning more structured and predictable. The APG requirement, coupled with the 90-day deferment, is expected to enhance financial discipline, boost confidence among stakeholders, and show that NCAA is committed to transparency and accountability in aviation levy management.
The Authority’s focus on levy compliance underscores a renewed commitment to financial accountability and operational stability, ensuring that passenger funds are protected while supporting a business-friendly aviation environment.
