Airport concession: Sirika says existing concessions within terminals ‘ll be inherited by concessionaire

Sen. Hadi Sirika, Aviation Minister


Posted by Sade Williams


Aviation Minister, Hadi Sirika has given updates on the progress made in the plan to concession four international airports in Lagos, Abuja, Port-Harcourt and Kano.

Speaking at a Virtual meeting of stakeholders on the matter on Tuesday, he said among other strategies that all existing concessions within the terminal concessioned will be inherited by the concessionaire and will be allowed to run its course before any review.

Sirika, who insisted that there will be no job losses, said Nigerian Airport concession will be a terminal concession and majority of its revenue will be derived from non-aeronautical sources.

He added that all other facilities at the airport and existing concessions outside  the airports terminals will still be managed by the Federal Airports Authority of Nigeria (FAAN) while the concessionaire will provide the investment required to upgrade the existing terminals, take over the new terminals and maintain them over a period of time to be determined based on financial assessment of each transaction.

“Passenger Service Charge and Security Charge will be shared by FAAN and the concessionaire and FAAN’s share of the charges shall be paid directly to FAAN by  International Air Transport Association (IATA). The concessionaire will sign service level agreement with FAAN and Nigerian Airspace Management Agency (NAMA) to ensure airport operates efficiently,  the service level agreement will cover the Runway, Taxi-way, Security and Air Traffic management.

“FAAN will be required to provide manpower through AVSEC for security of both the airside and landside, however, the concessionaire will provide and maintain landside equipment but FAAN will continue to provide, maintain Airside security equipment. All existing concessions within the terminal concession will be inherited by the concessionaire and will be allowed to run its course before any review. Tariffs will be regulated in accordance with the procedures set in the concession agreement.”, he said.

Sirika insisted that the need to concession the airports arose from the the fact that the airports in Nigeria are currently operating in a suboptimal environment, most notably due to decrepit infrastructure that have to be improved through the Public Private Partnership prorgeamme.

“All airports require investments in Runway maintenance, Navigational aids as well as terminal facilities. The airports have not been designed as international hubs but operate separate  international and domestic terminals’, he added.

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