NCAA Engages AON Over Advance Payment Guarantees for 5% Ticket Sales Charge

The Nigeria Civil Aviation Authority (NCAA) has engaged the Airline Operators of Nigeria (AON) on the implementation of Advance Payment Guarantees (APG) as part of measures to ensure the timely remittance of the statutory 5% Ticket Sales Charge (TSC).

The meeting was held on Monday, 2nd February 2026, at the Authority’s Corporate Headquarters in Abuja.

The critical engagement is sequel to a request by the AON for clarification on the requirement for airlines to provide bank-backed APGs in line with the Authority’s responsibility to safeguard funds collected from passengers on behalf of the Nigerian aviation system.

In his remarks, the Director-General of Civil Aviation (DGCA), Capt. Chris Najomo explained that the NCAA is empowered under the Civil Aviation Act (CAA) 2022 (as amended) to collect the 5% TSC on a cost-recovery basis, representing funds paid by passengers and held in trust by airlines for remittance to the Authority for sharing among key aviation agencies.

While expressing deep concern over persistent delays in remittances by some operators, the DGCA stated that the introduction of APGs is intended to strengthen compliance, improve remittance timelines, and ensure predictable funding for effective regulation across the aviation sector.

Following extensive discussions, the DGCA approved a 90-day deferment of the APG requirement to allow airline operators regularise outstanding remittances.

He, therefore, urged operators to take full advantage of the grace period and reiterated the Authority’s commitment to maintaining 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 expressed appreciation to the Authority for the engagement and pledged that all Air Operator Certificate (AOC) holders would meet their financial obligations within the deferment period.

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