FG Orders Airlines, Aviation Agencies to Agree on TSC Repayment Plans Within One Week
FG moves to resolve TSC dispute
The Federal Government has directed airlines and aviation agencies to agree on realistic repayment plans for outstanding Ticket Sales Charges (TSC) within one week, following an industrial dispute that disrupted flight operations at some Nigerian airports.
The directive was issued by the Minister of Aviation and Aerospace Development, Festus Keyamo, after an emergency meeting with airline operators, aviation unions and heads of aviation agencies following industrial action on August 11, 2026.
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Government sets one-week deadline
Keyamo directed the Directors of Finance and Accounts of aviation agencies to meet individually with airlines and agree on repayment schedules that take into account the operators' financial position and prevailing economic conditions.
The repayment arrangements are expected to provide airlines with a reasonable timeframe to clear their outstanding obligations rather than requiring immediate settlement.
The directive followed concerns over unpaid TSC obligations and the resulting dispute between airline operators and aviation unions.
TSC dispute triggered industrial action
The dispute became more prominent after aviation unions staged industrial action on August 11 over allegations that some airlines had failed to remit Ticket Sales Charges and concerns about workers' freedom of association.
The National Union of Air Transport Employees (NUATE) alleged that domestic airlines owed more than N25 billion in TSC, with Air Peace reportedly accounting for more than N17 billion.
The action affected Air Peace operations at Lagos' General Aviation Terminal and Abuja airport, leaving some passengers stranded and disrupting scheduled flights.
What the Ticket Sales Charge covers
The TSC is a statutory five per cent charge collected by airlines on behalf of the Nigeria Civil Aviation Authority (NCAA) on tickets for flights originating in Nigeria.
The collected revenue is shared among several aviation agencies.
Under the existing formula, NCAA receives 56 per cent, the Nigerian Airspace Management Agency (NAMA) 22 per cent, the Nigerian Meteorological Agency (NiMet) 9 per cent, the Nigerian College of Aviation Technology (NCAT) 7 per cent and the Nigerian Safety Investigation Bureau (NSIB) 6 per cent.
The revenue therefore provides an important source of funding for aviation regulation, air navigation, meteorological services, training and safety-related activities.
Government seeks to prevent further disruptions
Beyond the repayment arrangements, the meeting also addressed the relationship between airline operators and aviation unions.
Keyamo reaffirmed workers' right to decide whether to belong to a union and directed the NCAA to ensure that unions have direct access to airline employees.
Airlines that prevent unions from accessing their workers could face sanctions from the NCAA, according to the minister.
The stakeholders agreed to reconvene after one month to assess progress on the resolutions and review the wider situation within the sector.
Aviation sector faces wider financial pressures
The dispute highlights the financial pressures facing Nigeria's aviation industry, where airlines are dealing with high operating costs, foreign exchange exposure, fuel expenses and other rising business costs.
For aviation agencies, however, delayed remittance of statutory charges can affect their ability to fund operations and maintain critical infrastructure.
The government's decision to allow structured repayment therefore attempts to balance the financial realities facing airlines with the need to protect the revenue streams of aviation agencies.
Implications for business and infrastructure
A stable aviation sector remains important to Nigeria's wider investment and infrastructure environment.
Air connectivity supports business travel, tourism, logistics and investment flows between major commercial centres. Persistent flight disruptions can increase business costs and undermine confidence in transport infrastructure.
For the property sector, improved air connectivity can also influence investment decisions around airports and emerging commercial corridors, particularly where airport infrastructure is accompanied by roads, hospitality, logistics and mixed-use developments.
However, the immediate priority remains resolving the TSC dispute without creating further disruptions to passengers and airline operations.
Outlook
The Federal Government's one-week deadline provides a framework for airlines and aviation agencies to resolve outstanding TSC obligations without immediately placing additional pressure on operators' cash flow.
The effectiveness of the arrangement will depend on whether airlines comply with agreed repayment schedules and whether aviation agencies can improve monitoring and collection of statutory charges.
For Nigeria's broader economy, avoiding further industrial disruptions will be important as the aviation sector supports the movement of people, investment and business activity across the country.
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