Stakeholders in Nigeria's aviation sector have called on the Federal Government to extend financial incentives and policy support to ground handling companies. Industry experts fear that the survival of these handling companies is being threatened by over N9 billion in debt owed to them by domestic airlines, compounded by the ongoing crisis in the Middle East.
The call comes amid growing concerns over the financial health of ground handling firms, which provide essential services such as passenger check-in, baggage handling, and ramp operations for airlines across the country. Those who spoke to The Guardian at the weekend said the government needed to assist the handlers and other organizations in the sector, just as it approved a 30 percent discount on charges, levies, and taxes to airlines a few weeks ago due to the Middle East crisis.
Industry Leaders Speak Out
Chairman of the Aviation Ground Handlers Association of Nigeria (AGHAN), Olaniyi Adigun, said the association had already suspended a planned industrial action following the Nigeria Civil Aviation Authority's (NCAA) intervention. However, he stressed that urgent support was needed to prevent a deeper crisis. Adigun noted that the debt burden had continued to rise despite repeated efforts by handlers to recover payments from airlines. He pointed out that while the Federal Government recently approved incentives for airlines, other operators within the aviation ecosystem also deserved support.
Former Rector of the Nigerian College of Aviation Technology (NCAT), Samuel Caulcrick, said handlers deserved relief measures given the scale of the debts airlines owed them. He suggested that support could come in the form of discounts on obligations owed to the Federal Government rather than outright financial bailouts. Caulcrick also advocated establishing a central financial clearing structure for the aviation industry, possibly through the proposed Aviation Development Bank (ADB), to guarantee prompt payment settlement among operators. He advised handlers to adopt various technology platforms to prevent future debts from airlines, warning that unchecked debts could cripple their operations.
Diverse Opinions on Incentives
Aviation analyst Olumide Ohunayo said it would be unfair for only airlines to benefit from government incentives while other private investors in the sector grapple with the same economic realities. Aviation consultant Amos Akpan said the recurring financial crises in the aviation industry indicated policy and structural weaknesses. However, aviation consultant Chris Aligbe opposed calls for incentives for handling companies, arguing that airlines faced thinner profit margins and heavier operational pressures. Aligbe advised handlers to introduce stricter payment systems to prevent airlines from accumulating fresh debts.
NAAPE Raises Concerns Over Jet A1 Shortage
Meanwhile, the National Association of Aircraft Pilots and Engineers (NAAPE) has raised concern over the growing impact of Jet A1 aviation fuel shortage in the country, warning that prolonged supply disruptions pose serious risks to flight safety, airline sustainability, and workforce stability. The union, which represents licensed pilots and aeronautical engineers, said the persistent scarcity of aviation fuel had triggered widespread operational disruptions, including flight delays, extended crew duty periods, and route adjustments by airlines already struggling with rising operating costs. NAAPE noted that airlines are contending with foreign exchange volatility, high maintenance costs, airport infrastructure challenges, and fluctuating fuel prices, which have significantly altered operational economics over the past three years.
NAAPE President Bunmi Gindeh, in a statement, described the situation as a matter requiring urgent national intervention, warning that fatigue among flight crew members could erode critical safety margins within the system. He urged the Federal Government, the Nigerian Civil Aviation Authority (NCAA), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and fuel suppliers to treat the Jet A1 shortage as a matter of urgent national priority.
