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From left, Managing Director, Federal Airports Authority of Nigeria, (FAAN), Capt, Rabiu Yedudu, Chairman Senate Committee on Aviation, Sen. Smart Adeyemi and Chairman House of Reps. on Aviation Committee, Hon. Nnolim Nnaji during the joint Committee on Aviation visit to FAAN at the Murtala Muhammed International Airport, Ikeja, Lagos…recently
…insists FG must stop contributions to bridge infrastructure deficit
Posted by Sade Williams
The Federal Airports Authority of Nigeria (FAAN) has remitted N16.7 billion to the Federation Account Allocation Committee (FAAC) in 2021.
This is just as the Authority is asking the Federal government to suspend the contributions from it in other to bridge infrastructure deficit in the sector.
The Authority also said the call for suspension of the contributions in is accordance with the International Civil Aviation Organisation (ICAO) standard which says that all revue generated must be ploughed back into infrastructure development of the sector.
Making a presentation before the joint committees on Aviation from the National Assembly, Captain Rabiu Yadudu, managing director of FAAN, also said the Authority has shifted its focus from the aeronautical sources of revenue to the non-aeronautical so as to further improve the revenue performance.
‘’It is worthy to mention that even though FAAN does not have operating surplus, we had to remit N16.7 billion to the Federation Account as contribution to the Consolidated Revenue Fund as at the end of December 2021, for the year 2021 alone, in spite of the effect of the pandemic during this period. This has impacted on our ability to adequately meet up with our obligations.
‘’The Industry has infrastructural deficit which has to be bridged. Therefore, Government Support in this area is needed. This can be achieved by suspending the contributions to the Federation Account in compliance with ICAO Standards and Recommended Practices (SARPs) Doc 9562 on Airport Generation, which provides that:- Revenue Generated by Airports should be transparently re-invested wholly in operating and developing Airport facilities’’., he said.
Speaking on non-aeronautical revenues, he said: ‘’The Authority has shifted its focus from the aeronautical sources of revenue to the non-aeronautical so as to further improve the revenue performance. Aggressive sensitization is going on with respect to areas at the airports where investors can come in. Specific areas where effort is being focused on include: Advertisement, car parks, Private Airport Terminal operators and Bi-Courtney (BOT) revenue sources. On advertisement, the Authority is taking steps to terminate the non-performing concession agreements and engage new concessionaires. We hope to make significant progress before the end of 2nd quarter.
‘’Car parks Automation at the various Airports is presently ongoing, before the end of the year we should have achieved a great result. On the Private Airport Terminals, stiff sanctions are going to be applied for non-payment for various services rendered by FAAN’’., he added.
The Authority is also proposing a Revenue Budget of N188 billion for the year 2022 as against N125.4 billion approved for the year 2021, saying the projection was arrived at with the hope that the effect of the pandemic would have been over thereby leading to an increase in passenger traffic, as well as boost in the non-aeronautical revenue base of the Authority.
Yadudu added that in the last three years, in-spite of the effect of the pandemic, FAAN through its Internally Generated Revenue Budget has been able to achieve the following capital projects amongst others: Design, Building and Maintenance of Interior Spaces and Assets at MMA Lagos, Abuja and Portharcourt Terminals in 2019, Construction of Airline office Block at Portharcourt in 2019), Rehabilitation of Fire and Rescue Building at Portharcourt in 2020; Construction of Aviation Medical Clinic at Enugu International Airport (2020); Replacement of Terminal Building Ceiling at Enugu International Airport (2020)Construction and furnishing of Lounge at New International Terminal, Abuja Airport (2019)Renovation of Aviation Medical Clinic at MMA Lagos (2019)Rehabilitation of Toilets at the Terminal Building at Enugu International Airport (2020)Provision of COVID-19 Canopies across all the Nation’s Airports being managed by FAAN (2020)Construction of New Administrative Block at Kaduna Airport (2019), among others.
He disclosed that the Lagos New Terminal has reached 98% completion and will be ready for commissioning before the end of March 2022.
‘’Kano New terminal is also ready and should be commissioned before the end of Second Quarter 2022 hile the Enugu New Terminal will follow’’., he added.