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NCAA, Airlines And Payments Automation

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The current imbroglio in the Nigerian aviation industry arising from automation of payment systems has pitted the Nigerian Civil Aviation Authority (NCAA) against the domestic airlines under the aegis of Airline Operators of Nigeria (AON).
The dispute arose from the deadline issued to the eight domestic airlines to automate their remittance of the statutory five per cent Ticket Sales Charge/Cargo Sales Charge (TSC/CSC) to the regulatory authority which ended on March 31.
While the NCAA insists on the immediate compliance with the directive, the airlines want it to be suspended until the parameters which constitute the charges are clearly and properly defined.
The decision to collect the charges on behalf of the NCAA was a suggestion by the airlines operators in 2001.
It was unanimously adopted and an agreement signed by all parties after series of meetings and exchange of correspondences; it was subsequently enshrined in all the subsisting regulations.
However, the remittances have become a thorny issue between both parties due to lack of transparency and flagrant refusal of some of the airlines to put the money back into the coffers of the agency.
Thus, the NCAA had on December 6, 2016 mandated the airlines to automate the process by January  1, 2017.
Mr Sam Adurogboye, the General Manager, Public Relations of NCAA, says there is a move to put an end to airlines indebtedness to the agency which currently stands at over N15 billion.
He notes that the Aviation Revenue Automation Project (ARAP) system is being introduced to ensure transparency, accurate billing and prompt payments of charges due from the airlines to the NCAA.
According to him, this is in line with the Nigerian Civil Aviation Regulations (NCARs) 2015, Vol. 2, Part 18.12.5.
“The NCARs 2015 states thus: that all domestic and international airlines operating in Nigeria should forward to the authority through an electronic platform provided by the authority, all relevant documents such as flown coupons, passenger or cargo manifest, air way bills, load sheets, clients’ service invoices and other documents necessary for accurate billing within 48 hours after each flight’’.
Adurogboye says it was pertinent to point out that this directive has the full backing of the Federal Government for full implementation and strict compliance.
However, following series of meetings between the airline operators and the Director-General of NCAA, Capt. Muhtar Usman, the deadline was extended to March 31, to give them more time to comply with the directive.
With the expiration of the deadline, the NCAA issued a final compliance notice to the airlines, warning that “failure to comply will be viewed seriously as the authority will be forced to invoke the necessary provisions of the law against defaulting airline’’.
Reacting to the ultimatum, the AON President, Capt. Nogie Meggisson, says it is done in “bad faith’’ because the issues surrounding it have yet to be resolved.
“AON has no problem with the NCAA going ahead to automate the collection and remittance of the said charges.
“However, the NCAA needs to give clarification on what constitutes the five per cent Ticket and Cargo Sales Charge.
“The five per cent TSC is only applicable on base fare in compliance with industry practice and as currently  applicable to international carriers operating out of Nigeria,’’ Meggisson said.
He also accuses the NCAA of discriminating against the domestic airlines because foreign airlines are not mandated to join the same automation platform.
“It is apparent that NCAA is preying on domestic airlines which they see as an easy target, a cash cow and for cheap publicity.
“They are over regulating domestic operators and pushing domestic airlines to the edge of insolvency and bankruptcy.
“It is this kind of policy that has reduced the lifespan of Nigerian airlines and has consumed over 25 airlines in the last 30 years since deregulation in 1982,’’ he says.
According to him, in spite of the tax burden on airlines, the infrastructure and service level continue to deteriorate across all facets of the industry under the same authority.
He adds that while airlines in other West African countries operate 24 hours, Nigerian carriers are subjected to daylight operations only till 6.30 p.m. in most our airports.
Responding to Meggisson’s call for the suspension of the payment system, Adurogboye insists that the airlines must comply with the directive or risk sanctions by NCAA.
He says it is pertinent to point out that the NCAA is an autonomous regulatory agency which continues to remain solvent by cost recovery in line with ICAO Standard and Recommended Practices (SARPs).
Adurogboye says this could only be derived from the five per cent ticket and cargo sales charges statutorily.
He notes that the directive to automate covers both domestic and foreign airlines, adding that the foreign airlines have complied fully by remitting their collections through the International Air Transport Association/Billing Settlement Plan (IATA/BSP).
However, some industry watchers have appealed to both parties to amicably resolve the issue in the interest of the sector, especially as a result of its pivotal role in the socio-economic development of the country.

Asowata is of the News Agency of Nigeria (NAN)

 

Solomon  Asowata

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NPA Assures On Staff Welfare 

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The Managing Director, Nigerian Ports Authority (NPA), Dr. Abubakar Dantsoho, has said the management will continue to accompany its port infrastructure  and equipment  modernization drive  with the development of the welfare of its personnel.
Dantsoho made the disclosure recently while responding to the commendation by the Maritime Workers Union (MWUN) and the senior Staff Association of Statutory Corporations and Government-Owned Companies (SSASGOC) on the  clearing  of the age-long problem of employee stagnation, when the union paid him a courtesy visit at the Authority’s headquarters in Lagos.
A Statement by NPA’s General Manager Corporate & Strategic Communications, Mr. Ikechukwu Onyemekara, quoted Dantsoho as saying,  “our Port infrastructure and equipment modernization drive will go hand-in-hand with continuous staff welfare improvement”.
The NPA MD disclosed that human capital development constitutes the key strategy for creating and sustaining superior performance under his watch, adding that “talent development constitutes a critical success factor for the actualization of the big hairy audacious goals we have set for ourselves especially in the area of Port competitiveness.
“The only way we can meet and indeed exceed stakeholders’ expectations is to deepen the competencies of our human resources assets and boosting their morale.”
Speaking further, Dantsoho commended the Honourable Minister of Marine & Blue Economy, Adegboyega Oyetola, for approving the strategic proposal of the Dantsoho-led Management team that solved the over a decade-long problem of lack of promotion that had fuelled industrial disharmony.
“I must specially appreciate our amiable Minister for graciously approving the multi-pronged stratagem we deployed that cleared all outstanding cases of employee stagnation by conducting examinations in one fell swoop and instituted timelines to forestall a recurrence of such anomaly”, he sad.
Speaking on behalf of the joint maritime labour unions, the President  of Senior Staff Association of Statutory Corporations & Government-Owned Companies (SSASCGOC), Comrade Bodunde stated, “In addition to clearance of the backlog of stagnated promotions, we also wish to express our appreciation for the increase in productivity bonuses, provision of end-of-year welfare packages for staff, and the revision of the Financial Guide to the Condition of Service, which now addresses our members’ concerns about inflationary pressures.”
Nkpemenyie Mcdominic, Lagos
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ANLCA Chieftain Emerges FELCBA’s VP

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National Secretary of the Association of Nigerian Licensed Customs Agents (ANLCA), Elder Olumide Fakanlu, has been elected Vice President of the Federation of ECOWAS Licensed Customs Brokers Association (FELCBA).
The election took place during the FELCBA Congress, held from Tuesday, June 17th to Thursday, June 19th, 2025, in Freetown, Sierra Leone.
Fakanlu’s emergence as Vice President marks a significant achievement for Nigeria within the regional customs brokerage community.
Apart from Fakanlu, Secretary of the Seme Chapter of ANLCA, Austin Nwosu, was also elected, securing the role of Secretary of Relations with Institutions.
The Nigerian delegation played an active role in the congress, with Michael Ebeatu nominated as a member of the electoral officer team, ensuring a fair and transparent election process.
The three-day congress concluded with delegates undertaking a visit to the Sierra Leone Port, offering insights into the host nation’s maritime operations, followed by a recreational trip to the Tokeh Beach.
The newly elected executives are expected to lead FELCBA in its efforts to harmonize customs brokerage practices, promote trade facilitation, and advocate for the interests of licensed customs brokers across the ECOWAS sub-region.
Nkpemenyie Mcdominic, Lagos
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NSC, Police Boost Partnership On Port Enforcement 

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In a bid to enhance more enforcement in the nation’s Port, the Nigerian Shippers’ Council (NSC) has reaffirmed its commitment to stronger inter-agency collaboration with the Nigeria Police Force (NPF).
The Council said the collaboration is aimed at enhancing stronger enforcement, compliance and improve operational efficiency across Nigeria’s ports.
Executive Secretary/Chief Executive Officer of  NSC, Dr. Pius Akutah, made this known during a visit to the  Inspector-General of Police, Dr. Kayode Adeolu Egbetokun, at the Force Headquarters, Abuja.
The visit, which he said, focused on strengthening institutional synergy, comes in the wake of growing responsibilities for the NSC under the newly created Ministry of Marine and Blue Economy.
Akutah emphasized the critical role of security agencies in supporting port operations and ensuring regulatory compliance.
He called for the posting of police officers to assist the Council’s monitoring and enforcement teams at key port locations including Lagos, Warri, Onne, Port Harcourt, and Calabar.
“The posting will complement the activities of our revived task teams and enhance our ability to enforce standards across the maritime logistics chain”, he said.
Earlier, the Inspector-General of Police, Dr. Egbetokun, assured the Council of the Force’s readiness to continue supporting the growth of the maritime sector.
The IGP acknowledged that compliance enforcement is essential to the successful implementation of Nigeria’s Blue Economy objectives.
“The NSC and NPF are expected to deepen collaboration in the months ahead, with a shared focus on building a secure, efficient, and competitive port environment”, to the IGP emphasized.
Chinedu Wosu
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