Nnaji Nnolim, chairman, house of
representatives committee on aviation, says the aviation sector will remain in
a “pitiable state” until the Federal Airports Authority of Nigeria (FAAN) is
unbundled.
The lawmaker said this while
speaking at the 2019 colloquium of Nigeria Travel Smart, entitled: “Airports
Concession and Options for Airports Development in Nigeria.”
He said FAAN, as presently
constituted, is too complex to allow for growth and efficiency in the country’s
aviation sector.
The guest speaker said FAAN
should be split into three agencies namely: Nigeria Airport Development Agency,
Airport Management Company, PLC and Federal Airports Property Company Limited
respectively, for optimum growth.
“The Act that set up FAAN, giving
it the power to dominate in an area that can be open for private sector has to
be reviewed,” he said.
The lawmaker representing Nkanu
east/west federal constituency of Enugu said there’s need for synergy between
the public and private sector in order to address deficiencies in the country’s
aviation sector.
“The airport is the first port of
call for international visitors to the country and also the last port of call
on departure, so the impression an airport creates in the visitor’s mind gives
a greater outlook of a country,” he said.
 |
| Patrick Musa, senior transport engineer, African Development Bank (AFDB), Nnaji, Tumba, Olumide, and Ali Magashi, CEO, Kitari Consult Limited, at the event |
“It is glaring fact that our
airports are not just underdeveloped but also grossly underutilized. In
aviation today, the modern trend is that airports have become huge sources of
revenue generation.
“Revenues accrue from both
aeronautical and non-aeronautical sources, with non-aeronautical revenues now
becoming the dominant sources of airport development, stability and aviation
sustainability. Airports are now big business hubs with hotels and other
ancillary entities springing up in major international airports across the
globe.
“In Nigeria, we have not
exploited even up to 10 percent of the possible non-aeronautical revenues
because our airports are not yet developed to the level of harnessing the
revenue potentials available on the land side (non-aeronautical sources of
revenue).
“The unbundling of FAAN may lead
to a more efficient and progressive airport development and an enabling
environment that will attract private sector investments and tourism development in Nigeria.”
Reacting, Dapo Olumide, chief
executive officer of Ropeways Transport Limited, said the last 33-year
experiment of Nigerian airports under government has not recorded much
progress, hence the need to “change the status quo”.
“Concession of Airports does not
mean complete privatization but allowing the private sector to come in and
ensure global standard,” he said.
“We have been doing the same
thing for the last three decades, going round the circle.”
He however, opposed the
lawmaker’s call for the devolution of FAAN into three units, saying such would
only continue the complex structures of the agency.
In his welcome address, Simon
Tumba, convener of the colloquium, lamented over the parlous state of Nigerian
airports despite the presence of huge prospects for economic growth.
“For decades we have seen the
state of our airports, especially our major gateways in Lagos, Abuja, Enugu,
Port Harcourt, Kaduna and Kano. Over the last few years the Federal government
has made investments to enhance the
customer experience in these airports. Truth be told; we are lagging behind,
despite the efforts of the Federal Airports of Authority /FAAN),” he said.
“The Federal government has
approved N14 billion to renovate the Murtala Muhammed International Airport,
Ikeja, which is nearly $40 million.
“Taking cognizance to the
dwindling revenue of the government, very demanding social needs and the
increase of our debt profile as a nation, one may say the government is doing
its best. However $40 million is not enough for an emerging market like
Nigeria, a country with every potential to be a global hub. The government needs
to think out of the box!
“Our humble opinion in NTM is
that the government should explore a Public Private Partnership (PPP) and
Concession our airports carrying along the workforce at FAAN. With Nigeria’s
God given natural and Human Resources, and a solid leapfrogging plan and
strategy, we should be aiming for a futuristic airport of $2-5billion. We have
the population, the market and geographic position to make and realize such
aspirations.
“The aviation unions who are
averse to concession of our airports are merely shooting themselves in the
foot, and in the long run, may end in regret and bitter cries.”
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I totally agree
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