How FAAN plans to boost revenue from non-aeronautical sources, by Rafindadi



Posted by Sade Williams


The Federal Airports Authority of Nigeria, FAAN, is partnering State Governments to promote investments in airport infrastructural and cargo terminals and facilities to enhance air cargo operations.

The partnership is geared towards improving on its revenue generation in all fronts and the Ibom airport, Owerri cargo terminal and the newly commissioned Anambra cargo terminal is top on the list.

Director, Commercial and Business Development FAAN, Mr. Sadiku Rafindadi said, FAAN is committed in putting strategies in place to increase its revenue base through its aeronautical and non-aeronuatical sources.

Delivering a paper with the theme: Improving Airport Non-Aeronautical Revenue Stream” at the opening of the Business Summit on Cargo and Aero logistics and Drone Expo at the Lagos, Mr. Rafindadi said, many successful airports in the world depend more on non-aeronautical revenue sources arising from modern facilities and the provision of services that draw both passengers and non-passengers to the airports.

He explained that, the new international airport terminals when completed apart from Abuja and Port-Harcourt already commissioned would bring in 15 million more passengers and thus increase revenue for the airports.

“The new terminals shall open up potentials for tourism, businesses and effective use of Bilateral Air Service Agreement, BASA within partnering countries”.

” The terminals provides more space to cater to passenger preference, exciting retail facilities, Duty free shops, food and beverage outlets, advertising, car parking etc”.

Among the 22 airports in the country, Rafindadi in terms of revenue generation from January -December 2020, MMA generated 58%, NAIA, 21%, PHC 4%, Kano 4%, other airports 13%.

“Nigerian airports have enormous potential for high gross earnings if we’ll harnessed, each airport have their peculiarity in terms of tourism, agriculture, mining and aerotropolis to better improve their viability”.

To shore up its revenue generation, he said FAAN was at looking at increasing the share of non-aeronautical activities from below 30% to 40%, adding that this would be done, ” by focusing on investments in airport infrastructures and technology solutions to drive cost optimization, creating enabling environment and improving none aeronautical revenue streams”.

The FAAN Business Director also disclosed that, because about N576 billion ($1.2b) is lost to medical tourism yearly in Nigeria, in addition to its airport clinics being commercialized, FAAN is designating some land area at the airport to harness non- aeronautical opportunity.

Among the top contributors to non-aeronautical revenues he listed include car parking and access gate, advertising among others.

“Nigerian airports have the ability to grow their none aero revenue considering the geographical location of the country as a hub, the available land, climate, competition, consumer demand (population)”.

He added, “with the vast land available at our airports for business, FAAN is open to Foreign Direct Investment FDI and partnership with corporate organizations on different PPP business models through BOT, JV’s and Concessions to explore opportunities for improved none aeronautical revenue streams”.

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