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Home The business traveller & hospitality

Aviation sector braces for disruption amid ₦9bn debt row

by Business a.m.
May 5, 2026
in The business traveller & hospitality
N712.26bn MMIA upgrade puts Nigeria’s infrastructure credibility on trial

Oluwarasimi Omiyale

Air travel across Nigeria is on the brink of disruption as ground handling companies escalate a dispute with airlines over unpaid debts estimated at nearly ₦9 billion, raising the risk of widespread flight delays and cancellations.

The Aviation Ground Handlers Association of Nigeria (AGHAN), which represents firms providing essential airport services, has issued a final notice to airline operators, warning that its members may suspend operations if outstanding payments are not settled within a three-day window from May 4 to May 6.

Ground handling companies form the operational backbone of airline activity, delivering services ranging from passenger check-in and baggage processing to aircraft positioning and ramp coordination. Industry experts note that without these services, airlines are effectively unable to sustain normal flight operations.

AGHAN said repeated engagements with airline operators have failed to yield firm commitments on debt repayment, leaving service providers under mounting financial strain. According to the association, prolonged non-payment is constraining cash flow, impairing their ability to meet payroll obligations and maintain critical ground equipment.

The standoff introduces significant operational risk across Nigeria’s aviation network, particularly at major hubs where traffic volumes remain high. Analysts warn that any withdrawal of ground handling services could trigger a cascade of disruptions, including flight delays, cancellations and scheduling bottlenecks.

Beyond immediate operational challenges, the dispute may also have pricing implications. Airlines, already contending with elevated operating costs, could be forced to pass on additional expenses to passengers if service disruptions persist.

However, there are indications that last-minute negotiations are underway. An airline official, who declined to be named, confirmed that discussions between carriers and ground handling firms are ongoing, with efforts focused on restructuring payment terms and reducing the debt burden to avert a shutdown.

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