Nigeria Grants Airlines 90-Day Grace on Ticket Levy
The Nigerian Civil Aviation Authority has granted domestic airlines a 90-day grace period to comply with new requirements for bank-backed advance payment guarantees tied to a statutory ticket sales charge.
Under existing regulations, carriers must collect a 5 percent Ticket Sales Charge (TSC) from passengers and remit the funds to the regulator to support oversight and sector administration. The new requirement mandates airlines to provide advance payment guarantees (APGs) backed by banks to ensure timely remittance of the levy.
The temporary deferment is intended to give airlines time to regularize outstanding TSC payments and align with the new compliance framework. According to the regulator, the measure balances enforcement with operational realities facing local carriers.
The decision follows discussions between the Nigerian Civil Aviation Authority and the Airline Operators of Nigeria, an industry body representing domestic airlines. During the meeting, the association pledged that all member carriers would meet their financial obligations within the 90-day window.
The TSC is a key revenue stream for aviation regulation in Nigeria, helping fund safety oversight, inspections, licensing and other administrative functions. Delays or shortfalls in remittance can impact the authority’s ability to carry out its mandate effectively.
By requiring bank-backed guarantees, the regulator aims to strengthen accountability and improve transparency in the collection and transfer of passenger levies. The policy is also designed to reduce the risk of arrears building up in the future.
Industry stakeholders note that Nigerian airlines continue to face cost pressures, including fuel expenses, foreign exchange constraints and infrastructure charges. The grace period provides breathing room while reinforcing the expectation that compliance will be strictly enforced once the deadline expires.
At the end of the 90 days, carriers that fail to provide the required guarantees or settle outstanding payments could face regulatory action. The move signals a firmer approach to financial discipline in Nigeria’s aviation sector while allowing operators time to adjust to the updated requirements.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com