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Nigerian Carriers Push NCAA to Collect 5% Ticket Charge Directly from Passengers Nigerian Carriers Push NCAA to Collect 5% Ticket Charge Directly from Passengers

A fresh dispute is brewing in Nigeria's aviation sector as the Airline Operators of Nigeria (AON) presses the Nigeria Civil Aviation Authority (NCAA) to overhaul the way it collects its 5 per cent Ticket Sales Charge (TSC) and Cargo Sales Charge (CSC). The carriers want the regulator to bill passengers directly, rather than depending on airlines to remit the funds, a system they argue is unworkable in the current economic climate. For African aviation observers, the standoff highlights an evolving conversation about regulatory funding models across the continent.

The NCAA has openly admitted to severe financial strain, struggling to settle allowances for its workforce of more than 1,500 staff and unable to deliver essential projects. The agency blames mounting unpaid accruals from airlines, with outstanding debts reportedly climbing beyond N20 billion. To resolve the deadlock, AON has proposed that the regulator design a framework to receive the charges straight from travellers, mirroring the approach long adopted by the Federal Airports Authority of Nigeria (FAAN).

FAAN successfully ended a similar standoff years ago by issuing pre-paid stickers for its Passenger Service Charge (PSC), which airlines purchase upfront and attach to every boarding pass. This system removed friction between operators and the regulator, ensuring revenue flows steadily without burdening the airlines' cash flow. AON believes a comparable mechanism, possibly with a flat rate, would resolve the recurring tension with the NCAA.

Responding to the proposal, the NCAA's Director of Public Affairs and Consumer Protection, Michael Achimugu, acknowledged that direct collection is technically achievable, especially with modern digital tools. However, he pointed out that the existing Civil Aviation Act mandates airlines to act as collection agents on behalf of the regulator. Any shift, he said, would require a legislative amendment. He further insisted that ongoing debts must be cleared before any new arrangement is considered. A closed-door meeting recently brought together the Minister of Aviation and Aerospace Development, Festus Keyamo, the NCAA Director General, Captain Chris Najomo, and AON executives to thrash out the differences.

Operators argue that the 5 per cent levy is not actually paid by passengers but is deducted directly from each airline's ticket revenue, eroding profitability. They emphasised that they already settle multiple cost-recovery payments to NCAA, including pilot and crew licence renewals as well as inspection fees. Imposing an additional revenue-generating charge on top of these obligations, they say, contradicts International Civil Aviation Organisation (ICAO) recommendations, which discourage government agencies from generating profit at the expense of carriers.

The financial picture facing Nigerian airlines is bleak. Aviation fuel prices have surged due to instability in the Middle East, with carriers paying between N2,500 and N3,300 per litre and borrowing at interest rates as high as 30 per cent simply to keep aircraft flying. One major airline reportedly took on N48 billion in fresh debt within just seven weeks. Industry insiders also disclosed that the NCAA remitted up to \$500 million to the federal government last year, much of it generated from these very charges.

Industry analyst Amos Akpan, Managing Director of Flight and Logistic Solutions Limited, observed that whichever party collects the levy, administrative costs will arise. The crucial question, he stressed, is who absorbs those expenses. Aviation Round Table Executive Secretary, Olu Fidel Ohunayo, added that most airlines previously maintained dedicated accounts from which the NCAA drew monthly remittances, an arrangement that collapsed under the weight of post-conflict fuel inflation.

For Africa's broader travel trade, this dispute carries valuable lessons. As regulatory funding models evolve across the continent, transparent, technology-driven collection systems may soon become the benchmark, shaping how African aviation finances its growth in the years ahead.