Nigeria’s aviation industry is facing the threat of another major disruption as airline operators, regulators, and labour unions remain locked in a dispute over the remittance of the 5% Ticket Sales Charge (TSC), with outstanding collections estimated at about ₦12 billion. Aviation unions have threatened industrial action against airlines accused of failing to remit the statutory levy collected from passengers.

The Ticket Sales Charge is a mandatory levy paid by passengers whenever they purchase airline tickets. Airlines collect the charge on behalf of the government before remitting it to the Nigerian Civil Aviation Authority (NCAA) for distribution among aviation agencies. The revenue supports critical aviation services, including safety regulation, air navigation, accident investigation, weather forecasting, and aviation training.

Under the Civil Aviation Act 2022, failure to remit the Ticket Sales Charge is a criminal offence. However, despite the legal requirement, regulators estimate that outstanding remittances have accumulated to roughly ₦12 billion, raising concerns about the funding of aviation agencies responsible for maintaining safety and operational standards.

Earlier this year, the NCAA introduced Advance Payment Guarantees (APGs) to improve compliance by requiring airlines to provide bank-backed guarantees for future remittances. Although the regulator initially granted operators a 90-day grace period to settle outstanding obligations, enforcement was later suspended following consultations over the financial difficulties facing domestic airlines, including rising aviation fuel costs.

The dispute has since escalated after the National Union of Air Transport Employees (NUATE) and the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) threatened to picket airlines they accuse of withholding statutory funds. The unions argue that delayed remittances are depriving aviation agencies of resources needed to sustain safe flight operations and have warned they could ground defaulting airlines if the matter remains unresolved.

The Airline Operators of Nigeria (AON) has rejected the allegations, insisting its members are not indebted to the unions and that discussions on the matter are already ongoing with the NCAA. The association also questioned whether airlines should continue acting as collection agents for government levies when digital payment systems could allow passengers to pay statutory charges directly to regulators.

Industry experts have urged the Federal Government to intervene before the dispute results in flight disruptions. They argue that while aviation agencies require sustainable funding to perform their statutory responsibilities, airlines are also grappling with high operating costs, exchange rate pressures, and rising fuel prices. Analysts believe a long-term solution may involve modernising the collection process through direct digital payments while preserving adequate funding for aviation oversight and safety.

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 Nigeria’s airlines say new government taxes could shut down the sector, as President Bola Tinubu’s reforms reintroduce VAT on air tickets and customs duties on aircraft, engines, and spares from January 1, 2026.

“This policy will kill the airlines within 48 hours,” warned AON Vice Chairman and Air Peace CEO, Allen Onyema, citing thin margins, high FX costs, and multiple existing charges.

Government officials say the move is needed to expand Nigeria’s tax base and harmonise levies but insist there will be “no going back” once the law takes effect.

Operators fear the extra costs will push ticket prices up, reduce demand, and force carriers to ground planes or defer maintenance. A former aviation ministry director cautioned this could create “an undesirable safety outcome.”

Global aviation bodies urge governments to exempt air transport from VAT and import duties. IATA chief Willie Walsh said: “Adding new layers of taxation increases costs and risks, cutting connectivity.”

Analysts recommend phasing in VAT and restoring exemptions for safety-critical parts to protect both revenue and connectivity.

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