Lack Of Legal Framework May Affect Airports Privatisation

Some aviation experts  and
operators have said the objectives of the Federal Government to privatise the nation’s airports may not be realised as lack of a legal framework will discourage experienced investors in airport management from participating in the exercise.
According to them, a legal framework, put together by the National Assembly, will define and layout the conditions for the privatisation of these  airports and also define legal redress in case any of the parties involved wishes to opt out of the deal. It will provide the platform for negotiation without which a serious privatisation exercise would not take place as these would not be commitment to any agreement reached.
Such framework will also give assurance that government will not renege on the agreement, despite change in policy, or administration, as past experience has shown that government does not respect and honour agreements.
However, industry experts say non-existence of such legal frame work is likely to forestall the planned privatization of airports.
The Minister of Aviation, Mr  Osita Chidoka had outlined the privatisation of the airports, establishment of national carrier and improvement of safety and security at the airports as the key points of his tenure.
On privatisation, the minister was reported to have said that the Federal Airports Authority of Nigeria (FAAN), may not be able to effectively manage the airports as government may not have the funds for their continued sustenance, expansion and modernisation.
Mr Chidoka noted that huge funds go into remuneration and overhead in FAAN because the organisation is top heavy, adding therefore that the airports should be privatized so that they would be continuously upgraded as the country records rapid increase in passenger movement.
Recently, the Bureau of Public Enterprises (BPE) indicated that government would soon concession the airport facilities.
Director General of BPE, Mr Benjamin Dikki said the airports would be privatised, disclosing that the BPE was in the process of engaging experts to design an appropriate framework for the concession of the airports, after which the Ministry of Aviation and the Bureau would begin the process to privatise the airports.
But aviation consultant and Chief Executive Officer of Belujane Konsult, Mr Chris Aligbe, said such framework must be legislated. He said it would be dangerous to privatise the airport without legal framework, noting that without the framework foreign investors experienced in airport management may not indicate interest, so the airport would be handed over to businessmen who may not have any how know in airport management.