Business & Finance

NCAA Gives Airlines 2 Months To Pay Unremitted Charges


The Nigerian Civil Aviation Authority (NCAA) has directed all airlines, including domestic and charter carriers operating in the country to forward in full unremitted funds accruable to the authority in the next 60 days.

The NCAA at a meeting with the airlines also demanded from the airlines breakdown of the recently introduced “Taxes+Fees” component on all passenger tickets which include the amount due to each of the government agencies in the aviation sphere.

The agencies are the Federal Airports Authority of Nigeria (FAAN) which is beneficiary of five per cent Passenger Service Charge (PSC); the Federal Inland Revenue Services (FIRS)- five per cent VAT; and the NCAA, which also receives five per cent Ticket Sales Charges (TSC).

The apex civil aviation regulatory agency also maintained that any add-on charge and surcharges such as the fuel surcharges (YQ), or any other miscellaneous added on passenger ticket must be approved by the Authority before applying these charges on passenger tickets.

The meeting, which had top officials of the authority and airlines in attendance was held on Wednesday at NCAA headquarters and was presided over by the director-general of the authority, Captain Muhtar Usman. According to Usman, the directive is with regards to the five per cent TSA/TCA collected at source from the air passengers by the airlines on behalf of the federal government.

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“These sales charges are to enable all aviation agencies carry out their responsibilities of providing safe, secure and efficient regulatory  services for the overall benefits of all aviation stakeholders,” Usman noted.

After exhaustive deliberations between NCAA team led by the DG on one hand and operators led by Captain Chimara Imediegwu of FirstNation Airways on the other hand, agreement was reached by all parties on all the issues raised.

The operators however asked for adjournment till next week Wednesday the 27th of April, 2016 to enable them hold further consultations on the time line and its implementations.

Other decisions reached at the meeting included that airlines must desist from using funds “held in trust” for the government agencies;

The ongoing five per cent ticket, cargo, charter and sales charges automation of payments which offers real-time transparent transactions must be completed within two months, as this will remove endless reconciliation of data and reduce high debt profile of airlines to NCAA.

Also, it was reached that reconciliation of all outstanding debts must be completed within 60 days; and that the five per cent ticket, cargo, sales charges must be on gross ticket excluding VAT and Passenger Service Charge(PSC) only.

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