The Chairman of United Nigeria Airlines (UNA), Prof. Obiora Okonkwo, has said that the controversy over airlines’ remittance of the five per cent Ticket Sales Charge (TSC) to the Nigeria Civil Aviation Authority (NCAA) was aggravated by a labour dispute that disrupted an existing repayment arrangement.
Okonkwo, who is also the spokesperson of the Airline Operators of Nigeria (AON), said domestic airlines had been meeting their financial obligations to the government through the NCAA before the industry was hit by rising aviation fuel prices and other operational challenges.

He made the disclosure yesterday at the 30th Annual Conference of the League of Airport and Aviation
According to him, the airlines’ payment difficulties became pronounced from February following a sharp increase in the cost of aviation fuel, which he attributed to the international crisis.
He said the AON subsequently appealed to the Federal government for relief from the burden of regulatory charges, leading to a 30 per cent waiver granted by President Bola Tinubu.

He said: “Before February this year, there were no payment problems. All airlines were paying. The AON issue only became a problem because of the Gulf crisis. AON was the first to cry out. We wrote to the President, explaining that we could no longer pay these charges.
“We requested either a complete suspension of charges or temporary relief during the aviation crisis, and the request was granted. The President agreed and waived 30 per cent.”
He explained that following the presidential intervention, representatives of the airlines, the NCAA and the Ministry of Aviation and Aerospace Development held a series of meetings to resolve outstanding liabilities.

He explained that the meetings culminated in an organised repayment arrangement under which airlines were required to pay 10 per cent of their legacy debts within an agreed period and settle the balance through instalments.
He added that individual airlines subsequently met with the NCAA’s Director of Finance to work out their respective repayment schedules.
The UNA chairman said his airline went further by establishing a mechanism that would enable the NCAA to access agreed payments directly.

Okonkwo consequently rejected the portrayal of domestic airlines as serially non-compliant with their statutory financial obligations, arguing that attention was often focused on outstanding liabilities without considering the substantial amounts already remitted by operators.
He also queried the value airlines receive from the various charges imposed on their operations, particularly the five per cent TSC, which he described as excessive given the financial burden already carried by operators.
The AON spokesperson noted that airlines also bear additional costs whenever they require regulatory services, including aircraft inspections outside Nigeria.

“Beyond what we pay, we do not receive adequate value. When different stakeholders and agencies are asked to explain this, they simply say the government takes a large chunk of this money. The question is, for what?
“Most of you here know that the money charged is supposed to provide recovery. When we request NCAA to inspect our aircraft in London or America, they come, and we pay them. We do all this 100 per cent in advance. But when you speak of a five per cent charge, it remains unclear,” he added.
He maintained that the campaign for the removal of the TSC should continue, arguing that the charge was placing an additional burden on airlines already grappling with high operating costs, taxes and other levies.
On the recent confrontation between aviation unions and airlines, he acknowledged the unions’ responsibility to protect the welfare of aviation workers, but argued that the sector’s airlines were among the better-paying employers in the country.
He particularly condemned the confrontation at the airport, describing it as damaging to the image of Nigeria’s aviation industry.
Besides, Okonkwo commended the Aviation Roundtable and aviation journalists for speaking out over the incident, saying the industry expected stronger condemnation from stakeholders who understood the implications of such actions for the sector.