Aviation crisis looms as ground handlers set Tuesday deadline for N9bn debt payment

Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.

A full‑scale disruption of domestic and international flight operations across Nigeria is expected from Tuesday, April 28, 2026, after the Aviation Ground Handlers Association of Nigeria (AGHAN) issued a final ultimatum to indigenous airlines over an outstanding debt exceeding N9 billion. AGHAN, the umbrella body for the country’s five major handling companies – NAHCO, SAHCO, Butake, Precision and Swissport – has warned that its members will withdraw critical services if the airlines fail to settle the mounting financial obligations by the end of the seven‑day notice period. The move threatens to cripple essential ground operations, including passenger check‑in, baggage processing, aircraft marshalling and refuelling coordination, which are all vital to daily airline schedules.

In a letter dated 21 April 2026 and addressed to the President of the Airline Operators of Nigeria (AON), AGHAN Chairman Olaniyi Adigun and Vice Chairman Ahmed Bashir cited “significant pressure on operational capacity” and “unmet payment commitments” as the drivers for the planned withdrawal of services. The association said the debt, which has accumulated over time, has placed severe financial strain on its members, affecting their ability to deliver sustainable, efficient and safe services. “Despite repeated engagements and efforts made in good faith by our members to secure settlement of these obligations, the responses received thus far have not yielded the desired outcomes, with payment commitments largely unmet,” the letter stated. The notice was copied to key stakeholders, including the Minister of Aviation, Festus Keyamo, the Director‑General of the Nigeria Civil Aviation Authority (NCAA), the heads of the Federal Airports Authority of Nigeria (FAAN), the Department of State Services (DSS) and the Inspector‑General of Police.

The looming shutdown of ground handling services could effectively ground the operations of indigenous carriers. Without baggage handlers, check‑in staff, ramp coordinators and refuelling crews, airlines would be unable to process passengers, load cargo or prepare aircraft for departure, leading to widespread cancellations and extended delays. The impact would be felt immediately across Murtala Muhammed International Airport in Lagos and Nnamdi Azikiwe International Airport in Abuja, and would eventually spread to other airports where AGHAN members operate. The association has expressed hope that the ultimatum will prompt swift settlement of the debts, but has also apologised in advance to passengers for the impending inconvenience, stressing that the survival of the ground handling sub‑sector is at stake.

The crisis is not an isolated event. Domestic carriers have been pushing the Federal Government to write off huge debts owed to aviation agencies, while simultaneously battling a crippling shortage and surge in the price of Jet A1 aviation fuel. Prices have skyrocketed by more than 300 percent since the outbreak of the US‑Israel war in Iran and the subsequent shutdown of the Strait of Hormuz, a strategic waterway that accounts for a fifth of global fuel supply. Several airlines have begun rationalising routes and reducing flight frequencies, with Air Peace slashing its London‑Heathrow service to just three flights per week. At the weekend, a social media influencer accused a carrier of issuing boarding passes even when it had no fuel on‑site, leading to lengthy tarmac delays. The AON had earlier threatened to suspend all domestic operations entirely, but was prevailed upon by the government to allow further consultations.

Only one tangible measure has emerged from the high‑level meetings: a 30 percent discount on debts owed by airlines to service providers. The carriers, however, have been pushing for a total waiver of their liabilities to FAAN, NCAA and the Nigerian Airspace Management Agency (NAMA), among others. Industry analysts warn that the standoff between ground handlers and airlines is only the latest symptom of deeper structural weaknesses in Nigeria’s aviation sector, where chronic undercapitalisation, rising operational costs and policy gaps have created a fragile operating environment. Many ground handling companies have struggled to keep their equipment serviceable and to pay staff, as the airlines that owe them are themselves under tremendous financial pressure.

If AGHAN follows through on its threat, the disruption could extend well beyond domestic operations. International airlines rely on local ground handlers for baggage transfer, check‑in and ramp services; any interruption would affect the entire ecosystem of arrivals and departures. At a time when travellers are already facing extended waiting times and last‑minute rescheduling due to fuel shortages, the suspension of ground handling would add a new layer of chaos. The association has not announced any contingency plans, but its letter suggests that the withdrawal of services would apply across the board, with no exceptions for specific carriers. The government, which has been monitoring the situation, has not yet publicly intervened, and no emergency meeting has been scheduled.

AGHAN’s firm stance reflects the deteriorating financial health of the ground handling sub‑sector. For months, handlers have absorbed rising costs – including foreign exchange losses, spare parts inflation and wage pressures – while airlines deferred payment. With the debt now exceeding N9 billion, several of the five member companies are said to be operating at the brink of insolvency. The refusal of the airlines to clear the backlog, despite repeated engagements, has left the handlers with little choice but to enforce the ultimatum. Some industry observers note that the January 2026 introduction of a 30 percent discount on some debts helped, but that it was not enough to avert the current crisis, as the discount did not address the core issue of delayed settlement of past invoices. The association has vowed that its members will not resume services until a concrete payment plan is agreed.

As the Tuesday deadline draws near, passengers, travel agents and airport concessionaires are bracing for the worst. While AGHAN remains open to a last‑minute resolution, its leadership has made it clear that without a substantial commitment from the airlines, the withdrawal of services will proceed. The matter now rests with the airline operators and the Federal Government. Unless a high‑level intervention unlocks a payment arrangement within the next few hours, Nigerian aviation is headed for its most severe operational collapse in years, adding to the growing list of challenges that have already pushed the industry to the edge of viability.

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