Aviation Sector Story In Nigeria Is Not All Doom, Says FAAN MD/CE
The Managing Director and Chief Executive Officer of the Federal Airports Authority of Nigeria (FAAN), Mrs. Olubunmi Kuku says the story of the aviation sector in Nigeria is not all doom but that efforts are being made to achieve improvements.
Making her presentation at the 9th Airport Business Summit and Expo held in Lagos on August 20 to 22, 2024 under the Theme: “Airport Viability is Key to Successful Aviation Business Ambition,” Kuku admitted that majority of Nigeria’s airport facilities are operating below expected capacity but that airports are being prepared for possible equity investments that may lead to concessions and other forms of Public-Private Partnership programmes.
On concerns about the volume of traffic alongside increase in the number of airports, Kuku said “passenger traffic is driven by Gross Domestic Product (GDP) growth and economic development and not by number of airports.”
She identified keys to airport viability as operating modern structure that will run as an entity, developing infrastructure that is fit—for-purpose, leveraging on technology, innovation and partnerships.
On airports concession, she noted that “the investment needed to sustain aviation sector in Nigeria cannot come from government,” explaining that the fears of aviation unions regarding the proposed concession are valid, considering past experiences and that options of joint venture, management contracts and other forms of partnership were being considered.
“We are engaging in incentives to make the smaller airports attractive. We are looking at concessions on landing and parking fees at those airports,” she said, adding that FAAN is ready to sign Service Level Agreements (SLAs) that will position the airports for growths that are achievable, and that “”we have started conversation with IATA on how we can develop the airports as a hub.”
On diversification of revenue streams, she said efforts were being made to get larger contributions from non aeronautical revenue while exploring opportunities that exist in the yet to be tapped cargo sub sector.
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