Carriers refund N1B to passengers late 2025 as NCAA fumes over 5% TSC, CSC non-remittances

There are indications that passengers who were victims of poor airline service were refunded approximately ₦1,038,505,680.80 by the Nigeria Civil Aviation Authority (NCAA) in late 2025.

The record shows that more than 5,285 passengers received payments during this window. The 2025 refund volume was the highest in the NCAA’s 25-year history.

This milestone was largely attributed to a significant shift in regulatory enforcement and improved airline compliance.

The refunds were issued due to flight disruptions, including unannounced cancellations, prolonged delays, and inadequate service delivery.

This comes as the NCAA has expressed displeasure with airlines’ failure to remit the 5% Ticket Sales Charge (TSC) they collect on behalf of the government to the agency.

As such, this would form part of a major crackdown on airlines that fail to honour their billing for remitting the TSC charge and their description for chronic flight delays and poor passenger handling.

The NCAA found that many domestic airlines were collecting the 5% Ticket Sales Charge (TSC) and Cargo Sales Charge (CSC) from passengers but failing to remit the funds to the government.

The NCAA strengthened enforcement of Part 19 of the NCAA Regulations 2023, which outlines specific consumer protection obligations, including mandatory refunds for cancelled flights and compensation for delays.

This move marks a shift from the regulator’s previous stance of protecting and explaining for operators to one of strict enforcement and heavier ramifications.

The NCAA, through its Director of Public Affairs and Consumer Protection, Michael Achimugu, highlighted several critical areas of concern as the authority pushes for tougher sanctions to address recurring inefficiencies.

While acknowledging that some delays are beyond airline control, the NCAA stated that chronic operational failures will no longer be excused.

The regulator is strictly enforcing HOTAC (Hotel Accommodation) and First Needs Compensation. Under current rules, airlines must provide refreshments after two hours of delay and hotel accommodation if a delay extends into the night.

The NCAA noted that poor communication is the primary cause of passenger unrest and violence at airport terminals.

Achimugu noted that the aviation industry has enjoyed unprecedented government backing, from President Bola Tinubu to the Minister of Aviation and Aerospace Development, Mr Festus Keyamo, and the Director General of Civil Aviation, Captain Chris Najomo.

While acknowledging the harsh operating environment airlines still face, the NCAA insists that some lapses are indefensible.

Chief among them are poor communication during delays and cancellations, and failures to meet regulatory obligations, including hotel accommodation, refreshments, and basic care for stranded passengers.

These shortcomings, the NCAA Director explained, have fueled frustration at airport terminals and, in some cases, escalated into passenger unrest.

The NCAA cited the recent $2 million fine imposed on JetBlue in the U.S. as a model for how it intends to hold domestic carriers accountable for chronic delays, an unprecedented move aimed at restoring discipline and accountability in the system.

He disclosed that the aviation regulatory body is reviewing its enforcement framework to strengthen compliance and emphasised that, while operators will continue to receive support, passenger rights will no longer be compromised.

With policy reforms taking shape and consumer protection frameworks strengthening, he expects passengers to begin to feel the difference through improved flight operations and better service delivery.

In addition to delay-related sanctions, the NCAA is reportedly introducing a “No Pay, No Service” policy, effective January 2026.

This policy shifted the regulator’s relationship with airlines from lenient to transactional.

If an airline fails to fulfil its financial obligations to the government and the regulator, the NCAA will cease providing the regulatory services required for that airline to fly.

The policy is built on two main pillars designed to end debt accumulation: airlines are no longer allowed to “fly now and pay later”; they must clear all outstanding debts and remain current with their remittances.

Starting this month, airlines are required to provide financial guarantees upfront. If an airline cannot provide this pre-payment or guarantee, its operations are grounded.

Under the new 2026 enforcement rules, failing to remit charges is now treated as a serious offence. The consequences include service suspension and penalties of up to N5 million for non-compliance.

Experts predicted a thinning of the industry, with only financially stable airlines surviving.

Wole Shadare