Nigerian ground handlers give airlines three-day ultimatum over US$6m debt

Nigeria’s aviation ground handling companies have issued a final three-day ultimatum to domestic airlines to settle outstanding debts estimated at nine billion naira (about US$6 million), warning they will suspend critical airport services if payments are not made.

The Aviation Ground Handlers Association of Nigeria (AGHAN) said the deadline, which runs from May 4 to May 6, follows weeks of unsuccessful attempts to engage airline operators over the unpaid obligations.

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In a letter dated April 30 and addressed to the Airlines Operators of Nigeria (AON), the association expressed frustration at what it described as a lack of response from carriers despite earlier notices, including a prior seven-working-day ultimatum.

“We have yet to receive any communication, commitment, or concrete action from your members regarding the outstanding indebtedness,” AGHAN said in the correspondence.

Nigerian airport

Ground handling firms provide essential airport services including aircraft marshaling, baggage processing and ramp operations, making them a critical link in the aviation value chain. A disruption to these services could ground flights nationwide, affecting passengers, cargo operations and airline schedules.

AGHAN warned that continued non-payment has placed severe financial and operational strain on its members, many of whom have continued to deliver services while awaiting settlement.

“This continued lack of response has further heightened the financial and operational strain on our members, who have consistently engaged in good faith efforts toward an amicable resolution without success,” the association said.

It added that the latest notice represents a final opportunity for airlines to clear their debts before services are withdrawn without further warning.

“Consequently, we are constrained to issue a final notice of three days for the settlement of all outstanding obligations, failing which our members shall proceed with the withdrawal of services to all indebted airlines,” AGHAN said.

Nigeria Aviation Sector Growth
Nigerian Aviation Sector

The group also signaled it may pursue legal avenues to recover the debt if the dispute is not resolved promptly.

Nigeria’s aviation sector has faced recurring financial pressures in recent years, with airlines citing high operating costs, currency volatility and infrastructure challenges. Industry analysts say strained cash flows have often led to delayed payments to service providers, including ground handlers.

In an apparent effort to mitigate disruption, AGHAN said it remains open to dialogue and a negotiated settlement, stressing that its preference is to avoid actions that could impact the traveling public.

“Notwithstanding the foregoing, we remain open to immediate and constructive engagement aimed at resolving this matter amicably and avoiding any disruption to aviation operations,” the association said.

The group confirmed that key government and regulatory stakeholders have been notified of the situation, underscoring the potential national implications of a breakdown in airport services.

Those informed include the Ministry of Aviation and Aerospace Development, the Nigerian Civil Aviation Authority (NCAA), and the Department of State Services (DSS).

Nigerian airport

The involvement of regulators and security agencies highlights concerns over safety, security and economic fallout should the dispute escalate.

Airlines had yet to publicly respond to the ultimatum as of Tuesday. Attempts to reach AON spokesperson Obiora Okonkwo for comment were unsuccessful.

The standoff raises the prospect of widespread disruption across Nigeria’s aviation network if no agreement is reached before the deadline, with passengers likely to bear the brunt of any suspension of services.

Observers say the coming days will be critical in determining whether both sides can reach a compromise or whether the dispute will trigger operational paralysis in one of Africa’s largest aviation markets.

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