The federal government has instructed the Federal Airports Authority of Nigeria (FAAN) to make all its airports to generate revenues in order to meet financial targets and also sustain their operations.
From this year the federal government will no more fund projects in the agency and at the end of every year, FAAN is expected to contribute 25 per cent of its earnings to the coffers of the federal government.
With this development, the agency is now under obligation to find ways to make the docile airports to generate revenue. In response to the directive, FAAN has set up a committee to visit these airports to look at the possibility of developing non-aeronautical revenue sources to attract people to the airports.
It is said that out of 22 airports under the management of the FAAN only five are viable. They are the four international airports in Lagos, Abuja, Port Harcourt and Kano and then Enugu, which was also designated as international airport two years ago.
Besides these five airports only Owerri is now recording increase in revenue for the agency, so FAAN utilises all the funds generated by the viable airports to sustain others and also carry out other responsibilities.
FAAN is contending with so many challenges and the agency said it would be difficult to solve these problems without a boost in its revenue generation. For instance, there are many safety critical facilities that needed to be installed or replaced including landing aids, modernisation of airport terminals, installation of Airfield Lighting and others. FAAN do not have enough security personnel, it does not regularly train fire fighters as required by the International Civil Aviation Organisation (ICAO) and FAAN should have acquired and installed training equipment for fire fighters.
It is the inability of FAAN to solve these problems that there is recent clamour by industry stakeholders to privatise the agency or concession the airports.
But a top official of the agency told THISDAY that under government, FAAN could still achieve a lot with less interference.
“We are working at modalities to commission consultants to find out businesses that could be done at different airports in the country in order to boost non-aeronautical revenue. We know that if you build a shopping plaza at the Kano airport and use the upper part of the building as hotels, it will attract a lot of people both those who wish to travel and others who would be attracted by such facility to the airport. When they come they will pay to park their cars, anything they buy FAAN will earn something from it and we can provide recreation centres for the children and that alone will attract many parents that will be bringing their children to the facility,” the official explained.
Compared the private terminal in Lagos, MMA2 the official said Bi-Courtney Aviation Services Limited ensures all services it renders are paid for “but even BASL does not pay its debts to FAAN. Some people who owe FAAN when asked to pay will call one highly placed person to intervene on his behalf. That is why FAAN is reeling under huge debts. But things will work better if government gives us the freedom to operate without any interference, then at the end of every year we give account of our stewardship. This is the way airport managers in many countries operate and almost all of them that have this freedom make profits,” the official said.
