Nigeria’s aviation sector is facing a deepening crisis as the Airline Operators of Nigeria warns that domestic airlines have lost over N150bn in just two months, pushing many operators to the brink of collapse.
Board of Trustees member Roland Iyayi described the situation as critical, noting that airlines are struggling to stay afloat amid mounting financial pressures. He cautioned that continued tension with service providers could worsen the situation, stressing that ground handling companies depend heavily on airlines for survival.
The dispute stems from about N9bn owed to ground handlers, with the Aviation Ground Handlers Association of Nigeria threatening to escalate action if payments are not made. Its chairman, Olaniyi Adigun, confirmed that the group is considering its next steps in line with labour laws, including possible service withdrawal after issuing the required notices.
Iyayi pushed back against the threats, arguing that cutting services would be counterproductive since the existence of ground handling businesses relies on active airline operations. He emphasized that airlines cannot pay debts they currently lack the resources to settle.
Industry insiders have also urged restraint, warning that any disruption could trigger widespread economic consequences. They stressed that the collapse of airlines would not only affect the aviation sector but also create broader national challenges.
The standoff follows earlier warnings that ground handlers may suspend essential services if debts remain unpaid, raising fears of major flight disruptions across the country. Both sides now face mounting pressure to resolve the crisis through dialogue before it escalates further.
