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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A temporary disruption hit flight operations at the Murtala Muhammed International Airport in Lagos on Tuesday after an electrical spark triggered smoke inside one of its operational offices.

The incident, which occurred around 2:05 pm at the airport’s Terminal 3 facility, caused panic among passengers and staff before emergency responders swiftly intervened to contain the situation.

According to the Federal Airports Authority of Nigeria (FAAN), the affected terminal had to be temporarily shut down to ensure safety.

In an official statement, FAAN confirmed that the electrical spark led to smoke emission within the terminal, prompting immediate action from safety personnel.

Flights Diverted to Minimise Disruption

Passengers scheduled to depart from Terminal 3 were quickly redirected to Terminal 2 as authorities worked to maintain operational continuity.

FAAN noted that all flights operating from the affected terminal were successfully diverted, reducing the overall impact on flight schedules.

Emergency teams, including the Aerodrome Rescue and Firefighting Services, responded promptly and brought the situation under control within a short time.

No Casualties Recorded

Despite the tense situation, authorities confirmed that no injuries or casualties were recorded.

Officials also assured the public that the incident was effectively managed and did not escalate into a major emergency.

Maintenance Ongoing Before Reopening

As of the time of filing this report, electrical maintenance works were ongoing at the affected terminal.

FAAN stated that all electrical systems are being thoroughly checked and restored to ensure optimal functionality before reopening the facility for normal operations.

Recurring Power Issues Raise Concerns

The latest incident adds to a growing list of power-related challenges at the Lagos airport.

In recent years, the airport has experienced multiple electrical disruptions, including a major blackout in 2024 that caused significant flight delays.

More recently, in February 2026, Terminal 1 also suffered a power outage shortly before a fire incident affected part of the facility.

These repeated occurrences have raised fresh concerns about the reliability of electrical infrastructure at one of Nigeria’s busiest aviation hubs.

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The Federal Government has unveiled a new credit initiative tagged “Fly Now, Pay Later” to make domestic air travel more accessible for Nigerians.

The scheme was announced by the (CREDICORP), which said the initiative allows eligible individuals to book flights within Nigeria and pay in installments over time.

How the scheme works

According to CREDICORP, the program is designed to remove the burden of upfront ticket payments, enabling more Nigerians to travel when needed without financial strain.

The initiative is being implemented in partnership with and as part of efforts to expand access to consumer credit.

Interested applicants are required to visit the Visaro platform, select their preferred destination within Nigeria, and choose a repayment plan based on structured financing options.

Addressing rising air travel costs

The move comes amid growing concerns over the high cost of domestic flights, which has made air travel increasingly unaffordable for many Nigerians.

Airfares surged significantly during the 2025 festive season, with some one-way tickets rising by over 150 percent to more than N300,000. Airlines have blamed the hike on rising aviation fuel costs, foreign exchange challenges, and operational expenses.

Boosting financial inclusion

CREDICORP noted that the “Fly Now, Pay Later” initiative aligns with its broader goal of promoting financial inclusion and improving access to essential services through innovative credit solutions.

The agency added that the scheme will help Nigerians meet urgent travel needs while spreading payment over time, easing financial pressure.

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A long-running legal battle between AIC Limited, founded by the late business magnate Harry Akande, and the Federal Airports Authority of Nigeria (FAAN) has reignited, as FAAN’s N712 billion expansion at Lagos’ Murtala Muhammed International Airport moves into disputed territory.

The conflict centers on land leased to AIC in 1998 for a proposed flight path hotel and resort. FAAN later reclaimed the land, citing its importance to the airport’s master plan. The dispute has since spanned nearly three decades, with litigation in Nigerian courts and arbitration in London.

In August 2025, AIC’s lawyers issued a fresh warning, accusing FAAN of violating a court order by resuming construction on the land. The letter, dated August 19, urged FAAN to halt all activity or face contempt proceedings. AIC insists that while it supports airport modernization, legal agreements must be respected. A Federal High Court had previously ordered both parties to maintain the status quo.

FAAN has not responded publicly to the latest warning. The agency previously lost an arbitration case in London, where AIC was awarded $48 million in damages. Although a Nigerian court set aside the award, AIC secured enforcement in the UK, where the Court of Appeal upheld the decision in 2020.

Despite these rulings, the legal stalemate persists. With construction continuing on the contested land, the dispute remains unresolved; a symbol of the complexities and delays often seen in Nigeria’s infrastructure development.

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Airlines in Nigeria will, from January 1, 2026, resume the payment of import duties and Value Added Tax (VAT) on commercial aircraft, engines, spare parts, and air tickets – a policy reversal that ends the tax exemption introduced under the Buhari administration.

The decision was disclosed during a Business Webinar hosted by Aviation & Allied Business in partnership with the Federal Inland Revenue Service (FIRS), themed “Nigeria Tax Act (2025) & The Aviation Industry: Aviation Sector Enlightenment Initiative.”

Speaking at the event, Nkechi Umegakwe, Assistant Director of the Nigeria Revenue Service (formerly FIRS), said the government would fully implement the provisions of the Tax Reforms Act, stressing that there would be “no going back.”

She explained that, unlike the current regime where airlines enjoy waivers, all aviation operators must, from next year, remit VAT on their services, imports, and ticketing operations.

The reversal has already drawn criticism. The International Air Transport Association (IATA) faulted the policy shift, warning that Nigeria risks violating international treaties under the International Civil Aviation Organization (ICAO) and the Economic Community of West African States (ECOWAS), both of which discourage fiscal barriers that impede regional and global air transport.

The aviation industry, already grappling with high operational costs and foreign exchange shortages, is expected to feel the impact of the renewed taxation, with stakeholders warning it could drive up ticket prices and undermine Nigeria’s competitiveness as a regional aviation hub.

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