Reported by Weng Patrick Atokor | Journalist at Weng Global
Nigeria’s aviation industry is facing the threat of another round of industrial unrest as major aviation unions have issued a final warning to airline operators over the alleged failure to remit billions of naira in statutory Ticket Sales Charges (TSC) collected from passengers.
The unions, led by the National Union of Air Transport Employees (NUATE) and the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN), have threatened to picket defaulting airlines after accusing them of withholding funds that legally belong to the country’s aviation agencies.
The development has heightened concerns about possible disruptions to flight operations if the dispute is not resolved quickly.
Unions issue final warning
The latest threat follows the expiration of an earlier 14-day ultimatum given to airline operators to settle outstanding remittances.
According to the unions, several airlines have continued to collect the mandatory five percent Ticket Sales Charge from passengers without transferring the money to the relevant government agencies responsible for aviation safety, regulation and infrastructure.
In a fresh notice addressed to the Airline Operators of Nigeria (AON), the unions warned that they would begin picketing airlines that fail to comply with the law.
They argued that the continued withholding of the funds has deprived aviation agencies of critical operational revenue needed to perform their statutory responsibilities.
The unions stressed that the issue is no longer merely a financial disagreement but one that directly affects the safety and sustainability of Nigeria’s aviation industry.
What is the Ticket Sales Charge?
The Ticket Sales Charge is a statutory five percent levy included in every airline ticket sold in Nigeria.
Although passengers pay the charge as part of their airfare, the airlines merely collect the money on behalf of government aviation agencies.
The revenue is distributed among agencies including the Nigerian Civil Aviation Authority (NCAA), Nigerian Airspace Management Agency (NAMA), Nigerian Meteorological Agency (NiMet), and the Nigerian Safety Investigation Bureau (NSIB).
The money is used to fund aviation safety oversight, air navigation services, accident investigations, weather services and regulatory activities.
The unions emphasized that these charges are not airline revenue and therefore should not be retained by operators under any circumstance.
Billions allegedly withheld
According to the unions, the outstanding remittances accumulated over several months and years now amount to several billions of naira.
They warned that the financial strain has significantly affected the ability of aviation agencies to discharge their statutory responsibilities.
The workers’ groups argued that continued non-remittance threatens the financial health of agencies responsible for maintaining international aviation safety standards.
They also cited global aviation safety guidelines, noting that sustainable funding remains essential for effective oversight.
The unions maintained that allowing airlines to continue withholding the funds could weaken Nigeria’s aviation regulatory framework.
Airlines yet to publicly respond
As of the time of reporting, the Airline Operators of Nigeria had not issued an official response to the latest picketing notice.
Earlier disagreements between airline operators and regulators have centered on the collection and remittance of the five percent Ticket Sales Charge.
Some operators have previously argued that financial challenges within the industry have complicated prompt remittance of the charges.
Domestic airlines continue to grapple with rising operating costs driven by high aviation fuel prices, exchange rate volatility, maintenance expenses and aircraft leasing costs.
Industry stakeholders say these economic pressures have significantly affected airline finances in recent years.
However, the unions insist that financial difficulties cannot justify retaining statutory funds collected from passengers on behalf of government agencies.
Earlier NCAA enforcement
The dispute is the latest chapter in an ongoing disagreement over unpaid statutory charges.
Earlier this year, the Nigerian Civil Aviation Authority announced a controversial “No Pay, No Service” directive against several airlines over unpaid Ticket Sales Charges and Cargo Sales Charges.
The policy would have prevented defaulting airlines from receiving certain regulatory services until outstanding obligations were settled.
The directive was later suspended to allow further discussions between the regulator and airline operators.
Reports at the time estimated that outstanding debts owed by airlines had reached approximately ₦12 billion, highlighting the scale of the financial dispute.
Threat of industrial action
The unions say failure to comply with the latest notice will leave them with no option but to embark on peaceful picketing of affected airlines.
Such action could affect airport operations across Nigeria if workers withdraw support services or stage demonstrations at terminals.
Although the unions have not announced a specific date for the picketing, they insist that the warning should be taken seriously.
Passengers have been advised to monitor developments as any escalation may affect flight schedules.
Industry analysts believe both the airlines and regulators will likely intensify negotiations in the coming days to prevent disruptions to air travel.
Industry stakeholders call for dialogue
Aviation experts have urged all parties to resolve the dispute through constructive dialogue rather than prolonged confrontation.
They note that while airlines are facing significant economic challenges, statutory charges collected from passengers should be remitted promptly because they fund critical aviation services.
Experts also warn that prolonged disputes could damage investor confidence and negatively affect passenger experience.
Many believe a transparent payment framework and stronger enforcement mechanisms may help prevent similar disputes in the future.
For now, the possibility of picketing remains unless airlines comply with the unions’ demands or reach a negotiated settlement with aviation authorities.
Sources:
- Channels Television – Aviation Unions Threaten Strike Over Unpaid Ticket Levies
- Punch Newspapers – Aviation unions issue 14-day ultimatum over 5% TSC
- Independent Newspaper – Aviation Unions Issue Seven-Day Strike Notice to Airlines Over Unpaid Ticket Sales Charges
- The Guardian Nigeria – NCAA suspends ‘No Pay, No Service’ directive over airlines
- The Nation Newspaper – NCAA, AON clash over 5% Ticket Sales Charge
