Aviation
FAAN Harps On Joint Venture Initiative
Federal Airports Authority of Nigeria (FAAN), says it is considering a joint venture initiative in future investment opportunities because of the problems it encountered in the implementation of the concession agreements with private companies.
The Managing Director of FAAN, George Uriesi who stated this in an interview with newsmen said as far as his agency was concerned, the concession with the private sector had failed.
He explained that FAAN would adopt international standard of engaging the private sector to develop investment opportunities and introduce what is known as commercial hurdles which the intending investor must scale through before they would do business together.
“We are going to engage the private sector the way it is done in other parts of the world.
Any deal beyond the initial check, the deal must offer certain number of years and must meet about four or five other criteria. So, if the deal does not offer the condition we will not go into it.
“If it offers at least 10 per cent rate of return, at least profitability after the first two years and if you test it and proposition does not deliver, you don’t do it,” he added.
The FAAN boss stressed that the agency would move away from concession, saying that the concession failed because its precepts were not followed.
“The second thing now is that we are going to move away from concession.
The problem of the concession is that it has failed. The reason why it has failed is anytime that there is a concession, some influential people will come and hijack the essence of it. The essence of it is not bad, but the way it would be structured will tilt it against the interest of the agency,” he said.
He said that FAAN would move into joint venture relationship so that both parties would become fully involved in the business.
“But the investor cannot extort us anymore because the investor and the agency are both owners of the business so whatever the business makes, we share, not the one where an investor will be exploiting FAAN,” he said.
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Aviation Professionals Want Agencies Boards’ Inauguration
As a measure to curb corruption and restore accountability, the Association of Nigeria Aviation Professionals (ANAP), has called on the Minister of Aviation and Aerospace Development, Festus Keyamo, to push for the urgent formation and inauguration of governing boards for all other aviation agencies.
ANAP’s Secretary General, AbdulRasaq Saidu, made this call at the weekend when interacting with aviation correspondents, in reaction to recent inauguration of Board of the Federal Airports Authority of Nigeria (FAAN).
Keyamo had recently inaugurated the FAAN board, more than six months after its members were appointed by President Bola Tinubu, where Dr. Umar Ganduje was named Board Chairman, with FAAN’s Managing Director, Olubunmi Kuku, as the Vice Chairman.
Other board members include representatives from the Ministries of Justice, Defence, Tourism, and Aviation, as well as professionals from the Nigerian College of Aviation Technology, and FAAN’s legal department.
The ANAP scribe there urged the aviation Minister not to stop at FAAN but to ensure that all aviation parastatals are given functional boards to restore order and credibility to the sector.
He, however, commended Keyamo for recently inaugurating the board of the Federal Airports Authority of Nigeria but stressed that more needed to be done.
Saidu also warned that the continued delay in constituting boards for other aviation agencies creates room for unchecked abuses, including illegal contracts, fraudulent employment practices, and mismanagement.
“The absence of governing boards violates the enabling Acts that established these agencies. Only properly constituted boards can enforce discipline, ensure due process in decision-making, and provide oversight to prevent corruption”, Saidu said.
He emphasised that the aviation unions, including ANAP, have consistently raised concerns about poor governance and lack of transparency within the aviation system.
He called on President Bola Tinubu to act swiftly by appointing board members for all relevant agencies, in the interest of fairness and aviation safety.
Saidu also tackled the former Minister of Aviation, Senator Hadi Sirika, for failing to inaugurate any boards during his eight-year tenure, despite appointments being made by former President Muhammadu Buhari.
“ANAP raised the alarm several times under Sirika’s leadership, but nothing changed. That lapse has continued under the current administration, and it must be addressed now”, Saidu stated.
By: Corlins Walter
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