NCAA urges collaboration to boost cost recovery and aviation safety

The Director of Finance and Accounts, Nigeria Civil Aviation Authority (NCAA), Mr. Olufemi Odukoya, has emphasized the need for sustained collaboration among aviation stakeholders and government agencies to enhance cost recovery and uphold safety standards across the sector.

Speaking at the Civil Aviation Cost Recovery Optimization Stakeholders’ Retreat in Lagos, Odukoya stressed that inter-agency synergy is central to effective regulation, financial transparency, and sustainable growth in the aviation industry. “Collaboration is not optional; it is the lifeline of aviation safety and national development,” he said.

Odukoya noted that the NCAA operates on a cost recovery model supported by the 5 per cent Ticket, Cargo, and Charter Sales Charge (TSC), but delays or incomplete remittances by some operators threaten the Authority’s ability to carry out its safety oversight responsibilities. “Aviation safety and efficiency depend on consistent funding. When operators fail to remit funds promptly, the system is strained, oversight weakens, and risks increase,” he warned.

The NCAA is developing a new remittance framework requiring airlines to obtain Advance Payment Guarantees (APG) from their banks to safeguard against late or non-remittance. Odukoya reaffirmed the NCAA’s zero tolerance for defaults, emphasizing that full debt recovery, preventive measures, and stricter enforcement would define the next phase of financial regulation.

“Aviation is a key economic driver that contributes about $1.7 billion—or 0.7 percent—to Nigeria’s GDP,” Odukoya said, lamenting that the sector’s output remains below its potential. He called on stakeholders to maintain open communication, share data, and align objectives in the collective interest of the nation.