By all accounts, Nigeria’s aviation industry is once again at a familiar crossroads, caught between rising operational costs, mounting inter-company debts, and renewed calls for government intervention.
But while recent policy attention has tilted toward airlines, a quieter yet critical segment—the ground handling companies is making a case for inclusion in the incentive framework.
At the heart of the debate is a fundamental question: Should government incentives extend beyond airlines to other players like ground handlers, or should market discipline prevail?
A Case for Inclusion in Government Support
For the Aviation Ground Handlers Association of Nigeria (AGHAN), the answer is straightforward. Ground handling companies, they argue, are indispensable to aviation safety and efficiency, yet remain largely invisible in policy considerations.
Chairman of AGHAN, Olaniyi Adigun, frames the issue within the broader ecosystem. While commending recent federal incentives to airlines, he insists the intervention must not be selective.
“The aviation industry is a chain and not about the airlines alone”, Adigun said. “Ground handlers, fuellers, catering firms – all are critical to seamless operations. If incentives are given, they should extend across the value chain”.
His position is not merely theoretical. Ground handling firms are currently grappling with over N9 billion in unpaid debts from domestic airlines; liabilities that directly impact staff welfare, operational capacity, and ultimately, safety standards.
Industry observers note that these companies provide essential services such as passenger check-in, baggage handling, and ramp operations – functions that form the backbone of flight safety. Yet, unlike airlines, they have not benefited from targeted government relief.
Industry Voices Echo Call for Broader Incentives
Several stakeholders align with AGHAN’s position, arguing that aviation policy must evolve from selective interventions to a more holistic support system.
Director of Research at Zenith Travels, Olumide Ohunayo, underscored the need for equity among private investors in the sector.
“Ground handling companies are privately owned, just like airlines. Any incentive given to one segment should flow across others who are equally exposed to economic pressures”, he noted.
Similarly, aviation analyst, Amos Akpan, pushed the argument further, criticising what he described as a “piecemeal” approach to sectoral challenges. According to him, recurring crises – fuel costs, debt burdens, and infrastructure gaps highlight the absence of a unified national aviation strategy.
“We cannot continue applying temporary fixes”, Akpan argued. “Every segment – handlers, airlines, maintenance, and training needs an enabling framework that supports long-term sustainability”.
Former Rector of the Nigerian College of Aviation Technology, Samuel Caulcrick, offered a more measured perspective. While acknowledging the handlers’ financial strain, he suggested that incentives may come in indirect forms, such as reduced government charges or financial restructuring mechanisms.
The Counterpoint: Market Discipline Over Incentives
Not everyone agreed that government support is the answer.
Aviation consultant and CEO of Belujane Konsult, Chris Aligbe, presented a contrarian view; one rooted in market fundamentals rather than policy intervention.
“I do not think incentives for ground handlers are necessary”, Aligbe asserted. “Their profitability margins are generally higher than those of airlines, which operate on very thin margins”.
According to him, the real issue is not lack of incentives but weak financial controls. He advocated for stricter payment systems such as “pay-as-you-go” models to eliminate the persistent debt cycle.
“The handlers must put systems in place that prevent airlines from owing them in the first place”, he said, drawing parallels with fuel marketers who have successfully enforced stricter payment regimes.
Aligbe’s stance introduced an important dimension to the debate: whether government intervention risks masking inefficiencies that could otherwise be addressed through better corporate governance and industry discipline.
A Sector Bound by Interdependence
Despite differing views on incentives, stakeholders agreed on one point—the aviation industry operates as a tightly linked ecosystem.
From airlines to handlers, fuel suppliers to regulators, each segment’s stability directly affects the others. The current N9 billion debt crisis is a reflection of this interdependence, where financial strain in one area cascades across the system.
Efforts are already underway to address structural gaps. Proposals such as an aviation clearing house, stricter credit windows, and the creation of an Aviation Development Bank are being discussed as long-term solutions to financial instability.
Striking the Balance
The debate over incentives for ground handling companies ultimately reflected a broader policy dilemma: Should government act as a stabiliser across all segments, or should it allow market forces to enforce discipline?
For AGHAN and its supporters, incentives are not handouts but necessary support for a critical yet overlooked segment. For critics like Aligbe, they risk distorting a market that should instead be governed by efficiency and accountability.
As regulators like the Nigerian Civil Aviation Authority step in to mediate ongoing disputes, the outcome of this debate could shape the future of aviation policy in Nigeria determining whether support remains selective or evolves into a more inclusive, system-wide framework.
What remains clear, however, is that in aviation, no segment operates in isolation. And as the industry navigates its current challenges, the question is no longer whether intervention is needed but how far it should go.