Kuku Presents How FAAN Perceives Airports, Investors
The Managing Director and Chief Executive of Federal Airports Authority of Nigeria (FAAN), Mrs. Olubunmi Kuku has said that “for many years, airports were seen simply as infrastructure – runways, terminals and control towers. Today, we view them as platforms for investment and value creation.
Speaking via zoom link at the at the Nigerian Aircraft Acquisition and Investment Summit (NAAIS) held in Lagos last week, Kuku said “FAAN does not see investors, airlines or financiers as counterparties to be managed, but as partners to be engaged. We are committed to continuous dialogue with operators and investors, refining our frameworks in response to credible feedback; and championing collaboration across government agencies to support this sector.
If there are pain points, we want to understand them. If there are bankable ideas, we want to help unlock them. If there are global best practices that can work in our context, we want to adopt and localize them.”
She said that across Nigeria’s network of airports, FAAN sees clear opportunities for aeronautical investments in airside capacity enhancements, terminal upgrades, improved ground handling and safety-critical systems, Non-aeronautical investments in commercial real estate, cargo and logistics facilities, hospitality, retail and other revenue-generating services. FAAN also sees opportunities in support services in Maintenance, Repair and Overhaul (MRO) facilities, training academies, simulators and other technical support platforms.
According to Kuku, “these investments do more than beautify airports. They lower operating costs for airlines over time, improve passenger experience and throughput, create jobs, skills and technology transfer and enhance the bankability of projects tied to aircraft acquisition and operation.
As FAAN, we are repositioning our airports to be credible, profitable and sustainable platforms where capital can be deployed with confidence and clear visibility on returns.”
She said Nigeria is one of the most compelling aviation markets on the African continent and Nigeria is Africa’s most populous country, with a young, mobile and increasingly aspirational population.
“Our economy is diversified and regionally connected, generating sustained demand for both passenger and cargo traffic. Nigeria is naturally positioned as a hub for West and Central Africa, with the potential to connect Africa to the rest of the world more efficiently. Even in the face of global shocks – from pandemics to macroeconomic headwinds – air travel in and out of Nigeria has demonstrated remarkable resilience. Load factors are recovering, routes are rebounding, and new city-pairs are under consideration. For serious, long-term investors, what matters is not noise in the short term, but the fundamentals. And the fundamentals of the Nigerian aviation market remain strong,” said Kuku.
She further said FAAN is “fully aligned with the policy direction of the Federal Government to modernize and expand aviation infrastructure, strengthen safety, security and regulatory compliance, attract private capital and expertise through fair and transparent processes and support Nigerian airlines in their fleet renewal and expansion plans.”
