N22bn debt: Airlines reach settlement plan agreement with NCAA

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Domestic airlines have reached an agreement with the Nigerian Civil Aviation Authority (NCAA) on how to defray the N22 billion debt they owe to aviation agencies.

The director general of NCAA, Capt. Musa Nuhu disclosed this in Lagos yesterday when the House of Representatives Committee on Aviation did oversight of the agency.

Recall that the minister of aviation, Mr. Hadi Sirika, had at recent public hearing in Abuja revealed that local airlines’ total debts to the aviation agencies stood at N22 billion.

The breakdown shows N19.37 billion and $6,993,284 million (N2.7 billion) as unremitted ticket sales charge (TSC), and cargo sales charge (CSC) collected on behalf of the NCAA and the other sister parastatals.

Nuhu said NCAA had struck a compromise with the debtor airlines to ensure the debts are reconciled and payment plan favourable to all the parties agreed.

The director general said he was mindful of the difficulty brought by the coronavirus pandemic but maintained the payment plan had taken the interests of the debtors and creditors into consideration.

On the need to decentralise NCAA operations to reduce the cumbersome nature of regulation, Nuhu said plan was underway to set up five regional offices between 2020 and 2024.

 “We are empowering five regional offices to ensure the job in smaller areas gets done and they do not have to refer to Lagos or Abuja. It brings regulation closer to the operators outside Lagos and Abuja opening more regional offices in the far reaches of the country.

“Already Port Harcourt takes care of the southeast and south-south; but we are looking at opening a regional office in Enugu for the southeast. We are looking at another one in either Maiduguri or Yola for the northeast, Ilorin for the middle-belt and Uyo or Calabar for the south-south,” he said.

In his remarks, the chairman House Committee on Aviation, Mr. Nnolim Nnaji said the House was on its oversight function  and would look at what the NCAA had done and intended to do with its allocation and what would be allocated to it.

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