Stakeholders in Nigeria’s aviation sector have called on the Federal Government to extend financial incentives to ground handling companies, warning that the sustainability of the industry is under threat amid a mounting ₦9 billion debt owed by airlines.
The appeal comes despite recent government intervention granting a 30 per cent discount on debts owed by airlines to regulatory agencies such as the Nigeria Civil Aviation Authority (NCAA) and the Federal Airports Authority of Nigeria (FAAN), aimed at easing the burden of high operational costs driven by rising aviation fuel prices.
However, ground handling operators say they remain financially strained, as airlines continue to delay payments for services already rendered.
Speaking with aviation journalists on Sunday, the Chairman of the Aviation Ground Handlers Association of Nigeria (AGHAN), Mr. Olaniyi Adigun, stressed that the aviation ecosystem is interdependent and only as strong as its weakest link.
He lamented that the ₦9 billion debt owed to ground handlers is crippling their operations and affecting staff welfare.
“Every organisation is seeking survival, and we as ground handling companies also need to survive. This debt is huge for a sub-sector like ours, and all efforts to recover it from airlines have failed,” Adigun said.
He added that while airlines face their own challenges, obligations for services rendered must be met, noting that unresolved debts could disrupt insurance processes and compensation mechanisms within the industry.
Adigun also criticised airlines for prioritising capital-intensive investments while neglecting relatively smaller obligations to service providers.
Echoing his concerns, Mr. Olumide Ohunayo, Director of Research at Zenith Travels, described the debt as a symptom of deeper systemic issues within the aviation industry.
He advocated for inclusive incentives across the aviation value chain, arguing that all private investors, including ground handlers and airport concessionaires, should benefit from government support.
“Ohunayo said whatever incentive is extended to airlines should also apply to other stakeholders affected by the same economic pressures,” he noted, while recommending stricter credit policies and structured debt repayment frameworks.
Similarly, Mr. Amos Akpan, Managing Director of Flights & Logistics Solution Ltd., warned against recurring “fire brigade” solutions to industry challenges.
He called for a comprehensive policy overhaul that would reposition aviation as a driver of economic growth rather than a sector dependent on emergency interventions.
“The only way to avoid debt accumulation is through prepayment or immediate payment for services. The current system allows liabilities to build up because airline revenues are insufficient to cover operational costs,” Akpan explained.
Providing further insight, Capt. Samuel Caulcrick, former Rector of the Nigerian College of Aviation Technology (NCAT), suggested that relief for ground handlers could come through discounted government charges and improved financial clearing systems.
He recommended the adoption of centralized payment platforms, possibly through the International Air Transport Association (IATA) or a proposed Aviation Development Bank, to streamline transactions and prevent debt accumulation.
Caulcrick emphasised the interconnected nature of the aviation industry, warning that any disruption in airline operations would directly impact ground handling companies.
“It is an ecosystem. If airlines suspend operations, ground handlers will suffer significant revenue losses,” he said.
However, not all stakeholders support government intervention. Mr. Chris Aligbe, Chief Executive Officer of Belujane Konsult, argued that ground handlers do not require incentives, noting that airlines operate on significantly lower profit margins and face heavier cost burdens, particularly from fuel.
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“I do not think incentives are necessary for handlers. Their main issue is debt recovery, which should be addressed through better business practices rather than government bailouts,” Aligbe stated.
The debate highlights growing concerns over financial sustainability within Nigeria’s aviation sector, as stakeholders call for balanced policies to ensure the survival of all players in the ecosystem.
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