NCAA orders airlines to remit over N6bn TSA/TCA funds

The Nigerian Civil Aviation Authority (NCAA) has directed all airlines (domestic and charter) in the country to forward in full unremitted funds estimated to be N6 billion, accruable to it without further delay.

This directive was given at a meeting with the operators on non-remittance of 5% Ticket, Cargo and Charter Sales Charges (TSA/TCA) held at the agency’s headquarters Annex, on Wednesday, April 20.

The TSC is a charge collected for the agencies by the airlines in trust, to be remitted to government coffers, in order to avoid collection before flight and creating confusion, delays and missed flight.

In line with the Civil Aviation Act 2006, the NCAA is saddled with the collection of 5% sales charge on all tickets originating from Nigeria, cargo operations and charter/contract flights. The 5% Sales Charge after collection is shared with other aviation agencies namely: Nigerian Meteorological Agency (NIMET), Accident Investigation Bureau (AIB) and the Nigeria College of Aviation Technology (NCAT) as approved by the Civil Aviation Act 2006.

The Director-General of the NCAA, Capt. Muhtar Usman, presided at the meeting in company of the agency’s top management staff.

These sales charges are to enable all aviation agencies carry out their responsibilities of providing safe, secure and efficient regulatory services for the overall benefits of all aviation stakeholders.

At the meeting, the NCAA stated that it was imperative that all unremitted funds be forwarded, in full, to it, immediately, and it directed the airlines to desist from using the funds held in trust.

The NCAA said that the ongoing 5% Ticket/Cargo/Charter/Sales Charges automation of payments, which offered real-time transparent transactions must be completed within two months. This will remove endless reconciliation of data and reduce high-debt profile of airlines to it.

The NCAA further stated that reconciliation of all outstanding debts must be completed within sixty days.

The agency said that the 5% Ticket/ Cargo/ Sales Charges must be On Gross Ticket excluding Value Added Tax (VAT) and Passenger Service Charge (PSC) only; All airlines must provide to the Authority the breakdown of the recently introduced Taxes and Fees component on all passenger tickets, which include the amount due to each government agency: FAAN-Passenger Service Charge (PSC); Federal Inland Revenue Services (FIRS) – 5% VAT; and NCAA, 5% Ticket Sales Charges (TSC).

The NCAA sad that “Any add-on charge, surcharge (i.e. fuel surcharges, or any other miscellaneous added on passenger ticket must be approved by the Authority before applying these charges on passenger tickets.”

After exhaustive deliberations between NCAA team led by the DG and Operators by Capt Chimara O. Imediegwu of First Nation, agreement was reached by all parties on all the issues raised.

The Operators asked for adjournment till April 27, to enable them hold further consultations on the Time Line and its implementations. In attendance were officials from DANA Airlines, Azman Airlines, Medview Airlines, Chanchangi, and Overland Airways.