Flight Disruptions Loom as Ground Handlers Threaten to Suspend Two Airlines Over ₦9bn Debt

Taiwo
3 Min Read

Flight operations in Nigeria could face fresh disruptions after the Association of Ground Handling Agencies of Nigeria (AGHAN) directed its members to suspend services to two domestic airlines over accumulated debts exceeding ₦9 billion.

The association issued the directive following its Executive Meeting held on September 4, where members expressed concern over prolonged financial obligations owed by some domestic airlines.

The affected airlines were not named in the statement, but their outstanding debts reportedly account for more than 70 per cent of the total indebtedness owed to AGHAN member companies.

Airlines given seven days to pay

Under the directive, the affected airlines are to receive seven-day notices of suspension of ground handling services.

The airlines have been asked to pay 75 per cent of their outstanding debts within seven days.

The remaining 25 per cent is expected to be settled through a mutually agreed structured repayment plan to be completed within 90 days.

The development could affect critical ground handling operations at Nigerian airports and potentially result in flight delays or cancellations if services are suspended.

Ground handlers explain ₦9bn debt crisis

AGHAN Chairman, Mr Olaniyi Adigun, and Vice Chairman, Ahmed Bashir Gulmah, said the failure of some client airlines to meet their financial obligations had placed considerable pressure on ground handling companies.

According to the association, the financial strain is affecting the ability of its members to meet obligations to employees, suppliers, statutory stakeholders, lenders and shareholders.

It also warned that prolonged non-payment could undermine investments required to maintain safe and efficient ground handling operations.

AGHAN said it recognised the critical role played by domestic airlines in Nigeria’s aviation ecosystem and remained committed to resolving outstanding obligations through constructive engagement.

AGHAN seeks sustainable aviation industry

The association said the sustainability of ground handling operations requires a fair and responsible approach to commercial obligations across the aviation value chain.

AGHAN also reaffirmed its support for the five-point agenda of the Minister of Aviation and Aerospace Development.

“AGHAN and its members remain committed to working constructively with domestic and international airlines, the Nigerian Civil Aviation Authority (NCAA), airport authorities and all aviation stakeholders to continuously improve safety, operational efficiency, service delivery and industry sustainability.”

The association added that its members would continue investing in personnel, ground support equipment, technology, training, safety systems and quality assurance despite prevailing financial challenges.

AGHAN urged the affected airlines to use the seven-day notice period to engage with their respective ground handling companies and meet the agreed payment requirements.

The association said the move was intended to prevent disruption while addressing the financial obligations threatening ground handling operations.

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