Ad image

NCAA hinges airlines’ N40bn debt on non-remittance of compulsory TSA

BusinessDay
2 Min Read
Nigeria Airline
Nigerian Civil Aviation Authority (NCAA) has said the estimated N40 billion debt owed by domestic airlines was due to the non-remittance of 5 percent Cargo and Charter Sales Charges (TSA/TCA) collected at source from passengers by the airlines on behalf of the Federal Government.
According to Sam Adurogboye, acting general manager, public relations, NCAA, the sales charges were to enable all aviation agencies carry out their responsibilities of providing safe, secure and efficient regulatory services for the overall benefits of all aviation stakeholders.
Adurogboye said the introduction of the TSA/TCA automation of payments, which offered real-time transparent transactions, had helped to address the issue.
“So, we are collecting the money from source. We have also been working with the airlines on how they can pay off their debts through payments by instalment,’’ he said.
The authority also said good corporate governance was pivotal to the sustainability of domestic airlines in the country, as the NCAA had formulated and implemented sufficient policies aimed at improving safety and efficiency of airlines.
This can only be achieved if there is good corporate governance on the part of the airline operators, he said, noting, “The NCAA as the regulatory body will continue to do its job to ensure the safety and security of Nigeria’s airspace.
“However, the NCAA is not in charge of running these airlines but we believe that when there is good corporate governance, they will adhere to the Safety and Recommended Practices (SARPs).
“The NCAA’s directive is that no airline should operate without a minimum of two aircraft in its fleet.”
Share This Article
Follow:
Nigeria's leading finance and market intelligence news report. Also home to expert opinion and commentary on politics, sports, lifestyle, and more