After several years the major airport terminals in Nigeria have been managed by government agencies, most of the facilities still lack basic infrastructure like modern security equipment that are functional and attendant personnel, modern check in system, transit facilities and information and communication technology, which enables every passenger to connect to the Internet once inside airport terminal.
Airline Operators of Nigeria (AON) believe that if the airport terminals are concessioned in transparent manner to qualified investors, those basic needs would be provided by the concessionaire and this would enhance passenger facilitation, enable airlines to operate effectively and also provide needed equipment that could convey passengers from the terminal to the airside.
Former Chairman of AON, Captain Nogie Meggison noted that concession could be a solution to the myriads of the problems of airport infrastructure, including obsolete facilities, inadequate x-ray machines, inadequate technical personnel and others.
The Chairman and CEO of Air Peace and the current Vice Chairman of AON, Allen Onyema told THISDAY that concession would help modernise Nigerian airport terminals and would be beneficial to airlines, which expect that state-of-the-art facilities would be provided to enhance easy passenger movement.
However, he said that airport workers must be sufficiently compensated and comprehensive severance packaged worked out in such a way that those who may want to leave the service would be happy, adding that in the long run well-arranged concession plan would add more workers as the airport facilities are expanded.
Industry stakeholders have noted that despite the various upgrades done over the years with locally and externally sourced funds and grants, the deplorable state of airports in Nigeria has not met the functional needs of passengers and airlines.
With the service provided to passengers by airports globally dramatically changing due to the advance in technology with the introduction of robotics and Artificial Intelligence (AI) in some airports, passengers’ expectations have changed, as they now demand excellence as standards from airports they travel through. This is a tall order with airports in Nigeria as most are still deficient in terms of facilities.
This is what prompted the Minister of Aviation, Senator Hadi Sirika to, in line with the Buhari administration, shift from the old norm of airport remodeling to take firm steps towards the concession of airport terminals.
The Minister said this is in tandem with the Aviation Master Plan and the International Air Transport Association (IATA) has projected that the highest passenger traffic would be recorded in Africa and Middle East, but expressed fear that these regions might not build airport infrastructure to meet the expected capacity.
This is one of the factors that have made concession a necessity and such growth, Sirika noted, could be enhanced with the collaboration of government and the private sector, which is expected to provide the funds for airport infrastructure expansion and modernisation through concession under the PPP arrangement.
At a recent stakeholders’ virtual meeting on concession plans for the airports, Sirika said the Ministry would not sell the assets that belong to over 200 million Nigerians and the future generation of this country as those that were sold in the past were lost.
‘’We in government believe that we should hold those assets for the Nigerian people in trust. We must make those assets better to provide the services that are needed. So, we said, rather than sell out rightly, we will concession. In other words, we would give it up to someone who would operate them and make them better’’, he stated.
He believed that concession is a win-win situation for all concerned, as the government will get more money, the people will enjoy better services from the concessionaire, the industry will grow and after a certain time, the airports would be returned to government control.
The Minister said that the airport terminal buildings to be concessioned would generate their revenues from non-aeronautical resources, while all other facilities at the airports and existing concessions, outside the airport terminals, would still be managed by the Federal Airports Authority of Nigeria (FAAN).
The Director, Commercial and Business Development, FAAN, Sadiku Rafindadi, said the agency is committed to adopting strategies that would increase the status of the facilities and increase revenue base, through aeronautical and non-aeronautical sources.
He said among the 22 airports in the country, Lagos airport led the pack in 2020 revenue earning by 58 per cent. Abuja airport had 21 per cent; Port Harcourt and Kano had four per cent apiece, and the rest managed 13 per cent.
Rafindadi said: “Nigerian airports have enormous potential for high gross earnings if we will harness it. Each airport has its peculiarity in terms of tourism, agriculture, mining and aerotropolis to better improve their viability.”
He said that FAAN was looking at increasing the share of non-aeronautical activities from below 30 per cent to 40 per cent, “by focusing on investments in airport infrastructures and technology solutions to drive cost optimisation, creating enabling environments and improving non-aeronautical revenue streams”
However, some labour unions in the aviation sector, comprising of the National Union of Air Transport Employees (NUATE), Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) and Association of Nigeria Aviation Professional (ANAP), hold the view that the concession of the four main airports would lead to them losing their jobs and hence opposed the move. They cited examples of past exercises carried out in other sectors to back their claim.
But, according to the Minister, this is far from the truth, as research and audit exercise of the facilities carried out, indicated that more jobs would be created for the sector as the system is presently understaffed. He said the optimal usage of the various facilities would open up the sector for more job opportunities.
In order to ensure that the concession plan was realised in accordance to the Aviation Master plan, Sirika assured that the federal government would complete all outstanding aviation projects before 2023 when President Muhammadu Buhari is expected to handover political power to a new government.
