Ground handlers to suspend services to two major domestic airlines over mounting debt

The Association of Ground Handling Companies of Nigeria (AGHAN) has issued a stern directive to its member companies to issue a seven-day notice of service suspension to two major domestic airlines over severe, prolonged debt accumulation.

Over 70% of the total indebtedness is owed by just two major domestic airlines (names withheld)

The sector also carries unrecoverable debts left behind by defunct or suspended airlines like Air Nigeria and Dana Air that shut down operations while still owing ground handling providers.

The decision was finalised following a high-level Executive Meeting held on Friday, September 4, 2026, where association leadership expressed deep alarm over the crippling financial backlog owed by domestic operators.

The two targeted carriers collectively account for over 70 per cent of the total outstanding debt owed to AGHAN member organisations across the country.

Under the strict terms set out in the impending suspension notices, the affected airlines must clear 75 per cent of their total outstanding debt within seven business days.

The remaining 25 per cent balance must then be amortised under a mutually agreed, structured payment plan spanning no longer than 90 days.

Failure to meet these financial benchmarks will result in an immediate withdrawal of all ground handling support, effectively grounding the carriers’ operational fleets.

In a joint statement signed by AGHAN Chairman, Mr Olaniyi Adigun, and Vice-Chairman, Ahmed Bashir Gulmah, the association said persistent payment defaults by client airlines have placed an unbearable squeeze on ground handling operations nationwide.

“The persistent failure of some client airlines to meet their financial obligations has placed considerable financial pressure on ground handling companies,” the leadership noted.

“This compromises our ability to meet key obligations to employees, suppliers, statutory stakeholders, lenders, and shareholders, while hindering the substantial capital investments required to maintain safe and efficient ground support services.”

While acknowledging the vital role domestic carriers play within Nigeria’s broader aviation ecosystem, AGHAN emphasised that commercial sustainability requires accountability across every link of the value chain.

Ground handling firms need steady cash flow to continuously upgrade ground support equipment (GSE), maintain cutting-edge technology, deliver ongoing safety training, and uphold rigorous quality assurance standards.

The association reiterated its full alignment with the five-point agenda championed by the Minister of Aviation and Aerospace Development, affirming its commitment to a safe, commercially viable, and globally competitive Nigerian aviation industry.

Despite the current economic headwinds, AGHAN assured the flying public and industry regulators that its members remain dedicated to elevating operational efficiency and service delivery.

AGHAN urged the affected airline executives to use the seven-day window to engage productively with their respective handling providers, meet the required threshold, and prevent widespread disruption to domestic flight schedules.

As the countdown begins, the Nigerian Civil Aviation Authority (NCAA) and key aviation stakeholders are closely monitoring the situation, aware that a service shutdown for two major domestic airlines could cause severe operational bottlenecks across airports nationwide.

Wole Shadare