N300m Debt Crisis Hits Nigerian Airline as Ground Handlers Withdraw Services
- Ground handlers withdrew services from XEJET Airlines over an alleged N300 million debt, disrupting the carrier’s operations
- AGHAN says XEJET failed to honour repayment commitments after other indebted airlines submitted plans and began paying
- Services will remain suspended until XEJET settles its debt or reaches an agreement; the airline has yet to respond
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
XEJET Airlines is facing operational disruption after aviation ground handling companies withdrew their services over an alleged outstanding debt of about N300 million.
The Aviation Ground Handlers Association of Nigeria (AGHAN) directed its members to stop providing services to the domestic carrier, accusing the airline of failing to honour previous repayment arrangements.
Source: Getty Images
The directive, announced on Monday, September 28, 2026, followed several attempts by ground handling companies to recover money allegedly owed for services already provided.
The action has reportedly begun affecting XEJET’s operations. Sources said some passengers’ checked luggage had to be transferred to another domestic airline following the withdrawal of ground handling support.
AGHAN explains action against XEJET
In a joint statement signed by AGHAN President Olaniyi Adigun and Vice President Bashir Ahmed, the association said other indebted domestic airlines had responded to its concerns by submitting repayment plans and making payments.
XEJET, however, allegedly failed to comply with the terms of its arrangement.
AGHAN said the airline’s outstanding obligations had climbed to about N300 million, leaving the association with little choice but to order members to stop handling its operations.
“As it stands, the company owes our members about N300m,” the association said, adding that its directive had been fully implemented.
Ground handlers provide critical services to airlines, including baggage handling, aircraft loading and unloading, passenger support and other activities required for flights to operate smoothly.
Other indebted airlines face warning
The latest action follows an earlier seven-day ultimatum issued by AGHAN to domestic airlines owing ground handling companies.
Under the directive, affected carriers were asked to pay at least 75% of their outstanding debts or risk suspension of ground handling services.
The planned action was subsequently suspended after some airlines submitted repayment proposals and began settling their obligations.
AGHAN said XEJET failed to meet its commitments, prompting the latest withdrawal.
The association warned that other indebted airlines could face similar action if they fail to honour agreed payment schedules.
It acknowledged the difficult operating environment confronting Nigerian airlines but argued that ground handling companies were also battling rising costs of equipment, manpower and employee welfare.
Source: Getty Images
XEJET yet to respond
AGHAN said services would remain suspended until XEJET settles its obligations or reaches an acceptable repayment agreement with the affected companies.
As of the time of reporting, XEJET had not publicly responded to the allegations. The Punch reported that calls and messages sent to the airline’s spokesperson, Juliet Atikpekpe, had not received a response.
Nigerian airlines threaten total shutdown, give reason
Legit.ng earlier reported that the Airline Operators of Nigeria (AON) has issued a major warning to labour unions, saying domestic airlines may shut down flight operations across the country if any of its members is picketed again.
The airline body said it would no longer tolerate what it described as unlawful interference with airline operations, following the disruption of flights by labour unions at major Nigerian airports.
Source: Legit.ng
