Workers of the Federal Airports Authority of Nigeria (FAAN) have vowed that they would not allow the concession of the terminals at major airports across Nigeria to succeed, unless government guaranteed their entitlement before the take over of the facilities by the concessionaires.
The Secretary, Air Transport Service Senior Staff Association of Nigeria (ATSSSAN) FAAN branch, John Ogbe who made this known to THISDAY said the workers, led by the unions, have decided to interrupt the on-going concession process, knowing that there would not be money to pay off the workers when FAAN still has pension liability of N150 billion.
On Monday the federal government closed the bids for the concession of the terminal facilities at the Abuja, Lagos, Port Harcourt and Kano airports and promised to announce the concessionaires soon.
Ogbe told THISDAY that the Managing Director of FAAN, Captain Rabiu Yadudu appointed a committee two months ago, constituting union representatives, senior management staff and others.
The Committee was given a mandate to look at the labour issues and make recommendations to the agency on how to deal with severance entitlements when these airport facilities are concessioned.
“The labour issue is paramount. We do not believe the minister’s promise that no worker will lose his job when we know that there is pension liability of N150 billion hanging on FAAN and there is no money anywhere to offset the bill. We were not directly employed to work at the airports. We work for FAAN so we want to know what will be the fate of the workers who will be disengaged by the concession. Obviously there will be loss of jobs,” he said.
Ogbe also told THISDAY that the committee had requested from the Transaction Adviser a presentation to it to know the sequences of the concession process, adding that before the full business case and signing in of the concessionaires, workers would take action to protect their interest.
However, THISDAY learnt that ideally, after the closing of the bidding, the Ministry of Aviation would evaluate the bidding and take the result to the Federal Executive Council (FEC), which would give approval before those who won the concession would be announced.
THISDAY also learnt that some major international organisations that specialise in infrastructure and airport development bided for the airport facilities.
The Ministry of Aviation, THISDAY gathered, delayed the biding for one month in order to allow the foreign companies carry out due diligence on their Nigerian partners.
Industry consultant and CEO of BeluJane Konsult, Chris Aligbe, told THISDAY that concession of the airport facilities would yield huge revenue that the royalty paid to FAAN would be enough for the agency to effectively maintain other airports not concessioned.
He admitted that a concessionaire would not accept the burden of labour, so it must be completely structured out before the concessionaires would take over.
“When they come they will work with the people at the airport. They will wipe out all the portfolios. During the transition period they will watch the personnel and begin to fit the workers into new structures. The minister had explained earlier that those taken by the concessionaires would terminate their job with FAAN, paid their entitlements and they start with new appointments with the companies. Those not taken will return to FAAN.
“From what I know, government will share revenue from the concessionaires and about 40 per cent will go to FAAN and the agency will use it for the development of other airports. The royalty paid to FAAN by the concessionaires may even exceed the old revenues earned by FAAN from the major airports. For example, before concession, Delta government workers were generating N17, 000 daily from the Asaba airport tollgate, but under the concessionaire, about N378, 000 is generated daily from the same tollgate,” Aligbe disclosed.
He said that revenue that would come in from the concessioned airport facilities would be tremendous and would expose the leakages of revenue under FAAN management.
“So whatever FAAN received from the concessionaires will be ploughed back to run the other airports. Even the take over money that will be paid by the concessionaires will be given to FAAN. Sign on fee for the Asaba airport, which was given out in concession earlier this year was N1 billion. Delta State government was allocating N600 million annually to the airport. The concession period is 30 years. So without concession, the state government would have expended N18 billion on the airport for that period of time,” Aligbe also said.
