By Obinna Uballa
Nigeria’s aviation sector is under renewed strain as domestic airlines say they have lost about N150 billion within just two months, even as ground handling companies intensify pressure over outstanding debts of about N9 billion, raising fears of possible service disruptions.
The warning was issued by the Airline Operators of Nigeria (AON), which says operators are struggling to stay afloat amid rising operational costs, unpaid debts and mounting financial pressure.
A member of the AON Board of Trustees, Roland Iyayi, said the industry was approaching a breaking point, stressing that airlines have already suffered massive losses.
“Airlines have bled over N150bn in two months. Where is the money going to come from? It’s gotten to a point where nobody can threaten anybody any longer,” Punch Newspaper quoted him to have said.
He warned that the survival of aviation service providers, including ground handling companies, is directly tied to the continued operation of airlines.
“If airlines don’t exist, they don’t have a business. Nobody cares about the airlines; everybody wants to collect money,” he added, warning that continued pressure on struggling operators could trigger a wider collapse in the sector.
According to him, the industry is now at a critical point where dialogue, not confrontation, is the only viable solution.
“There’s no way airlines can do anything regarding any debt because survival has become very difficult. Airlines are struggling to survive,” he said.
He further cautioned that any disruption to flight operations would have ripple effects across the entire aviation value chain, including ground handlers and service providers.
However, tension is rising on the other side of the dispute as the Aviation Ground Handling Association of Nigeria (AGHAN) insists it may take further action if airlines fail to settle their debts.
The association’s chairman, Olaniyi Adigun, said members are weighing their next steps in line with labour regulations, including the possibility of industrial action.
“What we intend to do is to come out with a press conference… and we are going to state our next move,” Adigun said.
He noted that while some airlines have begun partial payments, the majority still owe, warning that the situation cannot be ignored.
Adigun added that the association is considering escalating its response after the expiration of its ultimatum.
“After the expiration of seven days, if we don’t hear from them, we have our own strategy. We will be having a meeting on Thursday. So let’s wait for the outcome,” he said.
He referenced labour law provisions that allow for further notices before industrial action, suggesting that a fresh notice could be issued if demands remain unmet.
Amid the standoff, some industry insiders are calling for caution, warning that the timing of the dispute could worsen Nigeria’s already fragile economic environment.
A senior airline operator, who spoke anonymously, urged both sides to embrace dialogue, stressing that the collapse of airlines would have severe consequences for the economy.
“If airlines go under, there will be an uproar in this country. We cannot afford that now,” the source said.
The source, according to Punch Newspaper, added that ground handlers and airlines must prioritise negotiations, noting that cooperation is essential to prevent widespread disruption.
The crisis follows earlier reports that ground handling companies issued a seven-day ultimatum to airlines over unpaid debts running into billions of naira, warning of possible withdrawal of essential services if obligations are not met.
The escalating dispute now threatens to deepen instability in the aviation sector, with stakeholders warning that without urgent intervention, flight operations across the country could be affected.
