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TSC: Airlines paid debts before action, says United Nigeria chair

Airlines had been paying their outstanding Ticket Sales Charge debts through repayment plans agreed with the Nigeria Civil Aviation Authority before union action disrupted the process, United Nigeria Airlines Executive Chairman, Prof. Obiora Okonkwo, has said.

Okonkwo disclosed this on Thursday at the 30th annual conference of the League of Airport and Aviation Correspondents in Lagos.

The conference was themed, “Towards a Sustainable Aviation Industry: Balancing Government Revenue Demands with Sector Growth.”

The comments came weeks after aviation unions embarked on industrial action over allegations that airlines had failed to remit the statutory five per cent TSC, disrupting flight operations and reviving concerns over accumulated debts.

Okonkwo said airlines had been meeting their TSC obligations until February 2026, when the Gulf crisis drove aviation fuel prices to about N3,300 per litre, further straining operators’ finances.

He said the Airline Operators of Nigeria subsequently sought relief from the Federal Government, which approved a 30 per cent waiver on the charges.

“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.”

Following the waiver, Okonkwo said airlines held discussions with the NCAA and the Ministry of Aviation to establish a structured repayment plan for their outstanding debts.

Under the arrangement, operators were required to pay 10 per cent of their legacy debts within a specified period, while the remaining balance would be settled through instalments.

“The airlines complied with this directive. The airlines did this. The director met with operators in Lagos and Abuja, and we developed a payment plan. This plan was in place. We were making regular payments according to the agreement we had with the NCAA until we heard about the labour union problem,” he said.

Okonkwo also reiterated his opposition to the five per cent TSC, arguing that airlines do not receive commensurate value for the charge while already bearing multiple taxes and regulatory costs.

He said the TSC further increases the financial burden on operators and called for continued dialogue over its possible removal.

Okonkwo also noted that airlines are required to pay 100 per cent in advance whenever NCAA inspectors travel abroad to inspect aircraft.

He said the aviation industry remains one of the better-paying sectors in Nigeria, while acknowledging the unions’ responsibility to protect the welfare of workers.

However, he described the airport picketing during the industrial action as a “shameful display.”