Nigeria threatens to suspend 23 domestic airlines over ₦46 billion debt

Breakdown of debt: While the airlines owed the Nigerian Civil Aviation Authority, NCAA, for statutory five% Ticket Sales Charge and Cargo Sales Charge (TSC/CSC) to the tune of ₦19 billion and $7.8 million, they are also indebted to the Federal Airports Authority of Nigeria, FAAN, and the Nigerian Airspace Management Agency, NAMA, ₦18 billion and N5 billion, respectively.

Risk of debt: The debts, according to the agencies, if not addressed, may lead to a total collapse of the sector currently struggling to remain in operations due to hike in aviation fuel, among others.

The Ultimatum: However, at a stakeholders meeting with indigenous airlines and ground handling companies in Abuja yesterday, the Director General, NCAA, Musa Nuhu, gave the operators one month ultimatum to sign a Memorandum of Understanding, MoU, with NCAA, which would stipulate the repayment plans of their debts to the agency.

NCAA accused of imposing too many charges: He expressed disappointment over a letter, which emanated from the Airline Operators of Nigeria, AON, signed by Alhaji Abdulmunaf Yunusa, the President of AON, dated August 8, 2022 and addressed to Sen. Hadi Sirika, the Minister of Aviation that accused the agencies, especially the NCAA of muscling out the operators through multiple charges.

Hard times for Aviation: He stated that the airlines and the entire aviation industry were going through a very difficult period, especially at this time, insisting that all the charges collected by NCAA were statutory and in compliance with the Civil Aviation Act 2006.

Meanwhile: Delta Air Line has said it would suspend New York-JFK and Lagos flight, with effect from October 4, 2022.

In a statement issued yesterday, the airline said the nonstop flight service would be halted to fit the ‘current demand environment’.

Delta, however, said its flight services from Lagos to Atlanta would offer onward connections to New York and other cities across the United States.