FAAN Engages Stakeholders On Revenue Growth, Airport Security, Other Issues
The Federal Airports Authority of Nigeria (FAAN), yesterday held 2025 Directorate of Commercial & Business Development (DCBD) Stakeholders’ Engagement Forum at Sheraton Hotels, Lagos with the theme, Strengthening Partnerships For Sustainable Growth & Development.
In her opening remarks, FAAN’s Managing Director and Chief Executive, Mrs. Olubunmi Kuku said the event was held to interact with stakeholders and gather feedback to provide for “progressive exchange of ideas.”
Making her presentation at the programme which featured a panel and interactive session, FAAN’s Directorate of Commercial & Business Development, Mrs. Adebola Joy Agunbiade said 92% of FAAN’s revenue was being generated from aeronautical services while 8% comes from non-aeronautical sources.
In his input at the panel, Dr. Young Uzodinma said the global standards on airports revenue sourcing from non-aeronautics is 45% to 60% as against the 8% recorded by FAAN, stressing the need for revenue optimization.
Mr. James Shallangwa pointed out that the passenger traffic growth recorded by Nigeria’s airports after 2020 when businesses closed down during the covid period, could have been driven either by growing insecurity in other transport modes, the mass exit of people from Nigeria, FAAN‘s improvement of airport facilities or airlines improvement of On-Time-Performance (OTP). He said the growth has been beneficial in form of airports business expansion and increased revenue for government.
Another panelist, Dr. Yinka Opeke said passenger experience is at the heart of aviation activities at the airports, stressing the importance of seamless movement and accessibility, technological innovation like self check-in kiosks at the airport, training of airport staff and feedbacks. She added that mergers and acquisition of airport businesses “can be a strategic tool for growth and survival” as it helps top streamline processes and enlarge capital injection into small businesses.
The Chairman of Sky Care Catering Services, Jalal Ammouri reported that delivering catering to the Lagos airport airside through Gate 11 has been challenging because of the bad state of the road, adding that between Gate 11 and the domestic terminal, the food and trays get scattered before the catering crew gets to the aircraft and they have to spend time resetting them. He said the bad road equally affects their trucks.
Responding, FAAN Director of Operations, Capt. Abdullahi Mahmood said there were plans to open Gate1 after the on-going road repairs to make their access to aircraft easier.
On revenue leakages from towing service and care hire, towing service providers raised concerns about FAAN staff who park vehicles indiscriminately on the airport road and the VIPs who use intimidating police escorts and park just anywhere to avoid paying fees at the car park.
Capt. Mahmood declared that all vehicles parked in violation or indiscriminately should be towed irrespective of the owner’s status, adding that FAAN staff who do so should be reported.
Car hire operators from Abuja noted that there were over 800 Bolt Drivers operating around Abuja airport, some of who may not be paying monies to FAAN whereas approved concessionaire drivers have been restricted to just 30 vehicles. They called for restriction of Bolt vehicles to 30 if they must continue operations at Abuja airport.
Stakeholders also called for a quarterly fumigation of the airport lounges against rodents as the volume of rodents at the lounges constitute health and safety hazards.
Bureau De Change operators called for installation of CCTV Cameras around the car parks and more illumination of the airport environment for security reasons.
In response to calls for a speed-up of the processing of On-Duty-Cards (ODCs), for airport users, Mrs. Agunbiade said “we intend to come up with an average number of staff that a concessionaires can have for a particular business. This will also save cost for the concessionaire.”
FAAN’s Director of Aviation Security Services, ACP Albert Afegbai Igbafe (Rtd) said there are too many ODCs that aid touting as some concessionaires use ODCs to make money for themselves but that the Managing Director has already approved optimization of ODC processes and review of major access control.
Mrs. Kuku observed that a lot of touting has happened through some concessionaires like car hires and BDC operators.
“When you are caught, you will lose your license,” she warned.
She also frowned at indiscriminate parking of cars and abandonment of fuel trucks around the Lagos airport road stating that those trucks have to go and that measures are already being taken to enforce that.
On encroachment into FAAN’s properties, Kuku said a committee had been set up and that a meeting was already being held with the Chief of Air Staff to resolve encroachments by the Air Force while “we are engaging with the Lagos State Government over charges on lands around the airport.”
Speaking on behalf of the League of Airport & Aviation Correspondents (LAAC), Mr. Kelvin Okunbor commended FAAN for the Stakeholders’ Forum that provided for a deeper conversation. He urged FAAN to match its vision and unfolded plans with action and enforcement.
FAAN’s Director of Special Duties, Mr. Henry Agberibe said there was already a schedule of FAAN’s Stakeholders engagements for the rest of the year 2025 and that the DCBD stakeholders’ forum would be held annually.
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