Two major domestic airlines in Nigeria face possible operational disruption after the Association of Ground Handling Companies of Nigeria (AGHAN) directed its members to issue seven-day notices over outstanding debts owed by the carriers.
The directive followed an executive meeting held on September 4, 2026, where AGHAN expressed concern over what it described as significant and prolonged indebtedness by some domestic airlines. The association did not identify the affected carriers but said the two collectively account for more than 70 per cent of the outstanding debts owed to ground handling companies.
Under the terms of the notice, the airlines are expected to settle 75 per cent of their outstanding balances within seven days. The remaining 25 per cent must be covered by a mutually agreed repayment plan and fully settled within 90 days.
Failure to meet the conditions could lead ground handling companies to withdraw essential services, potentially affecting passenger and aircraft operations at airports. These services include baggage handling, aircraft towing, passenger boarding stairs and cabin cleaning.
The move could have wider implications for air travellers if the affected airlines are unable to reach agreements with their handling providers, as ground handling services are integral to the routine turnaround and departure of aircraft.
In a joint statement signed by AGHAN Chairman Olaniyi Adigun and Vice-Chairman Ahmed Bashir Gulmah, the association said the prolonged failure of some airlines to settle their obligations had placed considerable financial pressure on ground handling companies.
According to the association, the financial strain is affecting members’ ability to meet obligations to employees, suppliers, lenders, shareholders and statutory stakeholders, while also sustaining the investments required for safe and efficient operations.
Ground handlers require continuous investment in equipment, technology, personnel, training, safety systems and quality assurance, making timely payment for services critical to their ability to maintain operations.
AGHAN, however, said it recognised the importance of domestic airlines to Nigeria’s aviation industry and was not seeking confrontation, urging the affected carriers to use the seven-day period to engage directly with their handling companies and resolve their outstanding accounts.
The association said the sustainability of ground handling operations depended on responsible commercial relationships across the aviation value chain, with airlines and service providers expected to honour agreed financial obligations.
The debt dispute comes against the backdrop of wider financial pressures facing Nigeria’s aviation industry, including foreign exchange volatility, high aviation fuel costs and rising operational expenses. Ground handlers, however, maintained that they could no longer sustain prolonged unpaid services while continuing to finance the infrastructure and resources required to support airline operations.
AGHAN also reaffirmed its support for the five-point agenda of the Minister of Aviation and Aerospace Development, Festus Keyamo, saying it remained committed to a Nigerian aviation industry that is safe, efficient, commercially sustainable and globally competitive.
The association said its members would continue to work with domestic and international airlines but urged the affected carriers to meet the conditions of the seven-day notice to prevent avoidable disruption to passengers and airport operations.
