Airport Investment Priorities In Response To Global Disruptions, By Former FAAN MD

The former Chief Executive of Federal Airports Authority of Nigeria (FAAN), Dr. Richard Aisuebeogun says “airport investment should prioritize safety-critical assets, reliable power, modern navigation and communication systems, efficient passenger processing, temperature-controlled cargo facilities and dependable access roads.”

The International Air Transport Professional was delivering his keynote speech titled “Navigating Global Disruption And The Road Ahead: Mobility, Energy And Trade Facilitation For Resilient Future”, at the2nd edition of Nigeria Transport Summit organized by JustAlive Communications at the Providence Hotel, Lagos.

He said “project selection should be supported by transparent cost-benefit analysis and credible maintenance plans. Aviation occupies a particularly strategic position in this transformation. It connects Nigerian businesses to international markets, facilitates the movement of time-sensitive cargo, supports tourism and investment, and strengthens the country’s participation in regional and global economic networks.

Realizing these benefits requires sound airline economics, reliable airport infrastructure, efficient cargo procedures, credible regulation, appropriate financing and sustained investment in technical skills.”

Aisuebeogun said “airports require continuous investment in runways, terminals, baggage systems, navigation equipment, security installations, cargo facilities, fire and rescue services, power supply and digital systems.

Infrastructure shortcomings can lead to congestion, delays, higher operating costs and a less satisfactory passenger experience. Limited cargo-handling capacity and inefficient ground processes can also undermine the competitiveness of Nigerian exporters.

Airport development should therefore be assessed in terms of operational performance, safety, cargo throughput, passenger demand, connectivity and financial sustainability rather than the physical scale of construction alone.”

On aviation fuel and transport energy, he said the aviation industry demonstrates the importance of energy security and that fuel costs often represent a significant proportion of airline operating expenses as disruptions in fuel supply can lead to  flight delays or even cancellations, increased ticket prices, reduced connectivity and economic losses. “Strategic fuel infrastructure is therefore essential for national resilience.

He explained that “the contemporary global economy is increasingly characterized by disruptions arising from geopolitical conflicts, energy market volatility, supply chain breakdowns, climate change, pandemics, technological transformation, and shifting trade dynamics.

These disruptions have exposed vulnerabilities within national economies, transportation systems, energy markets, and international trade networks. For developing economies, particularly in Africa, the challenge is not merely surviving these disruptions but building resilience that sustains economic growth and social development. Energy security and trade facilitation have become critical pillars of economic resilience, industrial competitiveness, and sustainable development. “

He argued that “investment in energy security, infrastructure development, regional integration, digital trade, logistics efficiency, and institutional reforms are essential for navigating uncertainty and building sustainable resilient futures” identifying the twenty-first century unprecedented global disruptions as the COVID-19 pandemic that brought international trade to a standstill, disrupted global supply chains, and exposed vulnerabilities within transportation and logistics ecosystems, the Russia-Ukraine conflict that created significant shocks in global energy markets and conflicts in the Middle East that continue to influence crude oil prices and maritime trade routes.

Climate change he says, has increased the frequency of natural disasters, affecting agricultural production, transportation infrastructure, and energy generation systems while technological disruptions, cyber threats, and geopolitical tensions have further complicated global economic relationships, raising fundamental questions on how nations can secure energy supplies, how trade systems can become more resilient, what role infrastructure should play and how Africa can position itself within a changing global economy. “The answers lie in resilience, innovation, and strategic collaboration among countries,” he said.

According to him, energy price volatility has affected  airlines, manufacturing industries, transportation systems and consumers and to build resilient energy systems, governments should pursue diversification by reducing dependence on single energy sources, pursue infrastructure investment by developing refineries, storage facilities, pipelines, power plants, and transmission networks, pursue renewable energy expansion by investing in sustainable energy solutions and pursue strategic reserves by maintaining adequate energy stockpiles to absorb shocks.

He said energy and trade are inseparable and that efficient trade depends on reliable electricity, fuel availability, transportation energy and industrial power supply. “Without adequate energy, ports cannot operate efficiently, industries cannot produce competitively, logistics costs increase and trade suffers. Trade facilitation involves simplifying, modernizing, and harmonizing international trade procedures. Effective trade facilitation reduces transaction costs, border delays, administrative burdens and logistics inefficiencies.

He said digitalization is beneficial in form of faster processing, reduced corruption, improved transparency, better risk management and real time optimization, adding that the global disruptions have effect on the supply chain and recent crises revealed weaknesses in global supply chains reflected in container shortages, transportation bottlenecks, port congestion and customs delay.

In his view, Africa has the opportunity to change global economy, standing at a critical crossroads. (1.59B people), with the continent possessing abundant natural resources, young population(60-70%)under the age 30, strategic geographical position, expanding markets and growing digital economy.

However, challenges remain infrastructure deficits, energy shortages, trade barriers, logistics inefficiencies and poor Interconnectivity. To implement the African Continental Free Trade Agreement (AfCFTA) successfully requires efficient border systems, modern logistics infrastructure, energy availability, digital trade platforms and implementation of Single African Air Transport Market (SAATM).

He said integrated transportation systems reduce trade costs and improve competitiveness, highlighting how the global disruptions affect Nigeria.

“Conflicts in major energy-producing regions and along important international trade routes can increase the cost of fuel, insurance, shipping, and imported transport inputs. For a country whose transport operators depend on petroleum products and imported technical equipment, these changes can quickly affect service delivery.

Aviation is particularly exposed because jet fuel is a major operating expense. In May 2026, Reuters reported that rising jet-fuel prices and supply shortages were disrupting Nigerian airline schedules, contributing to route adjustments, delays, and cancellations. The report also highlighted concerns about crew fatigue and the financial pressures facing operators.”

Geopolitical conflicts and energy-market volatility pressures affect road haulage, public transportation, rail operations, and maritime logistics. “Rising energy costs can translate into higher fares and freight charges, which ultimately increase the cost of food, manufactured goods, and other essential consumer commodities.”

“When the domestic currency weakens against major international currencies, operators usually face higher replacement costs, more expensive maintenance contracts, and greater difficulty financing capital-intensive investments.  These pressures are particularly significant for airlines, which often require foreign-currency funding for aircraft leases, insurance, maintenance and international services. This can result in reduced investment, delayed equipment replacement, higher fares, lower service frequency and declining operational reliability.”

“International supply-chain interruptions can delay the delivery of vehicles, railway components, airport equipment, signaling systems, construction materials and spare parts. Such delays can increase project costs and even extend the period during which the infrastructure remains incomplete.

Nigeria must therefore move beyond a reactive approach to procurement and develop stronger supply-chain risk management, strategic inventory planning, diversified sourcing arrangements and domestic technical capabilities.”

“The global transport industry increasingly relies on digital ticketing, automated cargo processing, electronic payments, tracking systems, data analytics and integrated logistics platforms. These technologies can reduce delays, improve accountability and strengthen customer service. However, they also create risks relating to cyberattacks, system failures, data protection and inadequate technical capacity.

Nigeria’s response must therefore combine digital investment with workforce training, cybersecurity safeguards and clear operational standards.

He said The African Continental Free Trade Area creates opportunities for greater intra-African trade, although the realization of those opportunities depends on practical issues including border procedures, market access, logistics costs and transport connectivity.

Air services can help connect Nigerian businesses with customers and suppliers across African markets, particularly where direct road or rail connections are limited or commercially impractical.”

He said regional expansion should be guided by market demand, safety, sustainable operating economics and fair competition.

In his policy recommendations, he said Nigeria should digitalize clearance, documentation, and cargo tracking through single-window platforms, reduce dwell times through coordinated, risk-based inspections, invest in cold chain and modern cargo facilities at airports and ports, reduce exposure to fuel and currency shocks through strategic fuel infrastructure and position aviation as a pillar of the national trade facilitation strategy, adding that “Nigeria’s response to global disruption will be judged by the resilience of its transportation systems.”

On the way forward, he recommended infrastructure that is interconnected, maintained, and operable, institutions that coordinate and are accountable, operations that are efficient, digital, and cost-competitive and aviation that is positioned as a strategic trade and development asset.

He concluded by saying that “Nigeria’s transport sector stands at a critical intersection between domestic development needs and a rapidly changing global environment. Global conflicts, energy-market volatility, exchange-rate pressures, supply-chain disruptions, technological transformation, and climate risks have made resilience essential to our economy.

Yet the country’s difficulties cannot be addressed through infrastructure construction alone. Roads must be maintained, Railways must provide dependable services, Waterways must connect effectively with commercial centres, Airports must operate safely and efficiently, and institutions must coordinate their decisions around clear economic and public-service objectives.”