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Tuesday, May 5, 2026

AGHAN Issues 72-Hour Deadline to Airlines Over N9 Billion Debt

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AGHAN has issued a final three-day ultimatum to Nigerian airlines over a N9 billion debt, threatening to withdraw ground handling services across the country.

 

The Aviation Ground Handling Association of Nigeria (AGHAN) has issued a final 72-hour ultimatum to domestic airlines over an accumulated debt estimated at N9 billion.

If the defaulting carriers fail to clear their financial obligations by Wednesday, May 6, 2026, the ground handlers will withdraw all essential services, risking a total shutdown of flight operations nationwide.

The standoff threatens to cripple passenger travel, cargo logistics, and general airport activities across the country.

The Escalating Debt Crisis
The dispute highlights a growing financial rift between ground handlers and airline operators over unpaid invoices for services rendered.

In a formal notice dated April 30, 2026, AGHAN executives expressed intense frustration over what they described as a deliberate refusal by airline operators to address their outstanding liabilities.

The letter, signed by Olaniyi Adigun, Chairman of AGHAN, and Ahmed Bashir, the Vice Chairman, was directed to the Airline Operators of Nigeria (AON).

The handling companies argued that the mounting debt has created a severe liquidity crunch for their businesses.

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Major members, including NAHCO Plc and SAHCO Plc, are struggling to maintain operations under the crushing financial weight.

Ignored Warnings and Strained Relations
Before issuing this final directive, the ground handlers previously granted the airlines a seven-day grace period to initiate payments or negotiate a settlement.

However, the initial window closed on April 28, 2026, without any financial commitment from the indebted carriers.

The prolonged silence prompted AGHAN to escalate the matter to avoid a total collapse of their operational capabilities.

The handling association explained that continuous service delivery without compensation is no longer sustainable in Nigeria’s harsh economic climate.

Highlighting their exasperation, the handlers revealed that multiple attempts to reach the airline executives were simply ignored.

“We refer to our letter dated 20th April 2026 on the above subject matter and wish to bring to your attention that, as of the date of this correspondence, we have yet to receive any communication, commitment, or concrete action from your members regarding the outstanding indebtedness,” Adigun and Bashir stated.

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The executives added that their members have consistently engaged in good faith efforts, but those attempts yielded zero results.

Adjusted Timelines and Potential Service Disruptions
Although the handlers initially planned to withdraw their services on May 1, they deferred the strike out of respect for Workers’ Day celebrations and industrial harmony.

Consequently, the revised three-day notice period officially commenced on Monday, May 4, and will expire at the close of business on Wednesday, May 6.

If an agreement is not reached, the impending strike will paralyze essential ground services, meaning aircraft cannot be marshalled, passenger baggage cannot be loaded, and ramp operations will halt entirely.

The leadership emphasized that their patience has run out after weeks of unfulfilled promises from the airlines.

“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, without further recourse.

”  Olaniyi Adigun, Chairman, AGHAN.

Beyond halting operations, the association warned that it would explore all available legal remedies to recover the trapped funds.

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Stakeholder Notification and Industry Impact
Recognizing the massive economic implications of an aviation shutdown, AGHAN has officially alerted key government regulators and security agencies.

The association formally copied the Minister of Aviation and Aerospace Development, the Nigerian Civil Aviation Authority (NCAA), and the Department of State Services (DSS) to keep them abreast of the situation.

Such proactive notification underscores the systemic risks involved, as a disruption would instantly ground domestic flights, stranding thousands of passengers.

Despite the aggressive posture, the ground handlers maintain that their doors remain open for urgent dialogue to avert a national crisis.

As the deadline rapidly approaches, the burden now rests entirely on the indebted airlines and federal regulators to broker an emergency resolution.

A failure to settle the dispute will not only ground the aviation industry but also strike a severe blow to a Nigerian economy reliant on seamless domestic connectivity.

Industry stakeholders are watching closely to see if the government will intervene before the Wednesday deadline expires.

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