LAGOS, NIGERIA — Aviation ground handling companies in Nigeria have raised concerns that outstanding debts owed by domestic airlines could rise to about N18 billion if urgent steps are not taken to address the growing financial pressure in the sector.
Industry operators warned that the current debt profile, already estimated at around N9 billion, is increasing rapidly and could double before the end of the year if airlines fail to meet payment obligations.
The warning highlights deepening financial tensions within Nigeria’s aviation value chain, where service providers say delayed payments are affecting operational efficiency and service delivery.
Ground handling firms provide essential services such as baggage handling, aircraft servicing, cargo management, and passenger assistance at airports across the country.
Operators say the accumulation of unpaid invoices is putting pressure on their ability to maintain equipment, pay staff, and sustain quality service delivery.
They cautioned that continued non-payment could eventually disrupt airport operations and negatively impact flight schedules nationwide.
Industry stakeholders argue that the aviation sector depends heavily on a stable financial relationship between airlines and service providers to function effectively.
Some ground handlers explained that rising inflation, foreign exchange volatility, and operational costs have further worsened their financial burden.
They also noted that many domestic airlines are struggling with low passenger yields and high operating expenses, which has contributed to delayed settlements.
Despite the challenges, ground handling companies insist that airlines must prioritise debt repayment to avoid a breakdown in service delivery across airports.
Aviation analysts warn that if the situation is not addressed, it could lead to broader disruptions, including delays, cancellations, and reduced efficiency in airport operations.
They say the aviation ecosystem is interconnected, meaning financial strain on one segment often affects the entire industry.
Stakeholders have called on regulators and aviation authorities to intervene and mediate between airlines and service providers to prevent escalation.
Some industry voices have also suggested structured repayment plans or policy interventions to ease liquidity pressure on struggling operators.
The warning comes at a time when Nigeria’s aviation sector is already facing multiple challenges, including high operating costs, ageing infrastructure, and fluctuating passenger demand.
Experts say resolving the debt issue is critical to maintaining stability and confidence in the country’s air transport system.
Attention now turns to whether airlines and ground handling companies can reach a resolution that prevents further accumulation of debt and protects airport operations nationwide.
