LAGOS/Nigeria: Stakeholders in Nigeria’s aviation ground handling sector have called on the Federal Government to extend financial incentives and intervention measures to ground handling companies amid rising operational costs and a growing ₦9 billion debt owed by domestic airlines.
The appeal was made on Sunday during interactions with aviation journalists, as industry operators warned that the mounting debt burden could threaten the sustainability of the aviation ecosystem if urgent measures are not taken.
The development comes after the Federal Government approved a 30 per cent discount on debts owed by airlines to aviation regulatory agencies, including the Nigeria Civil Aviation Authority (NCAA) and the Federal Airports Authority of Nigeria (FAAN), to cushion the impact of high operating costs and aviation fuel challenges.
However, ground handling operators insist that they are also battling severe financial pressures and should not be excluded from government support initiatives.
The handlers had earlier threatened industrial action over the unpaid ₦9 billion debt owed by airlines, but later shelved the move following the intervention of the NCAA.
Chairman of the Aviation Ground Handlers Association of Nigeria (AGHAN), Mr. Olaniyi Adigun, said the aviation industry operates as an interconnected chain where the failure of one segment could negatively affect the entire sector.
According to him, airlines and ground handling companies have maintained long-standing business relationships, but the persistent debt profile is gradually crippling the operations of handlers.
“Every organisation is seeking survival and we as ground handling companies too, we need to survive the situation. The debts are piling up and we are talking of ₦9 billion,” Adigun stated.
He lamented that repeated efforts by handling companies to recover the debts had yielded little results, despite the services already rendered to airlines.
Adigun noted that the situation was already affecting staff welfare, operational efficiency, insurance obligations and other critical activities within the sub-sector.
He argued that airlines should resolve disputes with ground handling companies through legal and industry-approved channels rather than withholding payments for services rendered.
“We are all facing the same industry challenges together, including high aviation fuel costs, diesel, insurance and other operational charges,” he added.
Also speaking, the Director of Research at Zenith Travels, Mr. Olumide Ohunayo, backed calls for incentives for handlers, describing the debt situation as evidence of a broader structural challenge within Nigeria’s aviation industry.
Ohunayo maintained that since ground handling firms are private investors like the airlines, government interventions should be extended across the aviation value chain.
“I think as we have listened to the airlines, we should also listen to the ground handlers and other private investors within the aviation ecosystem,” he said.
He further advocated for a review of the credit window granted to airlines, suggesting that debts should not exceed a two-week credit period going forward, while existing liabilities should be renegotiated.
According to him, the NCAA should work with stakeholders to establish sustainable payment frameworks capable of preventing future debt accumulation.
Managing Director of Flights & Logistics Solution Ltd., Mr. Amos Akpan, warned against adopting what he described as “fire brigade approaches” to recurring aviation sector challenges.
Akpan stressed the need for a comprehensive national aviation policy capable of repositioning the industry as a major economic driver rather than a sector constantly dependent on emergency support measures.
“The only way to avoid accumulation of debt is spot payment on provision of handling services or prepayment before service is offered,” he said.
Former Rector of the Nigerian College of Aviation Technology (NCAT), Capt. Samuel Caulcrick, suggested that relief for ground handlers could come through discounts on obligations owed to the Federal Government.
He also proposed the use of financial technology platforms and dedicated aviation financial institutions such as the proposed Aviation Development Bank to ease credit and payment processes within the sector.
Caulcrick noted that airlines and handlers remain interdependent, warning that the collapse of airline operations would significantly affect the earnings of ground handling companies.
However, Chief Executive Officer of Belujane Konsult, Mr. Chris Aligbe, opposed calls for direct government incentives for handlers, insisting that the financial realities confronting airlines are more severe.
According to him, airlines operate on slimmer profit margins and are more vulnerable to fluctuations in operational costs, especially aviation fuel prices.
Aligbe argued that the major challenge facing handlers revolves around debt recovery and business management systems rather than the absence of government intervention.
He maintained that the sector should focus on strengthening financial structures and payment mechanisms instead of relying on bailouts.
