NCAA Grants Airlines 90-Day Grace Period On Advance Payment Guarantees

The Nigeria Civil Aviation Authority (NCAA) has approved a 90-day grace period for domestic airlines to comply with the new mandatory Advance Payment Guarantee (APG) requirement. This decision followed a strategic meeting on February 2, 2026, between the Director-General of Civil Aviation, Capt. Chris Najomo, and the Airline Operators of Nigeria (AON) in Abuja.

 The APG policy, rooted in the Civil Aviation Act 2022, requires airlines to provide bank-backed guarantees to ensure the prompt remittance of the 5 percent Ticket Sales Charge (TSC), which carriers collect from passengers in trust for the government.

The move is part of the NCAA’s broader “Zero Debt Strategy” aimed at tackling the persistent multi-billion naira indebtedness of domestic carriers to regulatory agencies. By requiring an APG, the NCAA ensures that even if an airline faces liquidity issues, the statutory charges, which fund safety oversight and infrastructure are protected and remitted via the bank guarantee.

While originally slated for an immediate January 2026 rollout, the 90-day deferment acts as a “compliance buffer,” allowing airlines to regularize their financial records and clear outstanding debts without the immediate pressure of bank-backed collateral.

Aviation leaders, including Capt. Edward Boyo of Overland Airways, have lauded the NCAA for its “consultative approach,” noting that the grace period demonstrates a balance between strict enforcement and the ease of doing business.

 The NCAA warned, however, that the extension is not a waiver. Once the 90 days expire in May 2026, any airline failing to provide the mandatory APG may face severe regulatory sanctions, including the potential suspension of their Air Operator Certificate (AOC), as the authority seeks to move the industry toward a more transparent and financially disciplined future.