Reps Give Condition For Airports’ Concessioning

The Chairman, House of Representatives Committee on Aviation, Hon Nnolim Nnaji, has called for unbundling of the Federal Airports Authority of Nigeria (FAAN) ahead of move to concession major airports in Nigeria.
Nnaji made the call, yesterday, in Lagos at the 2019 Nigeria Travels Smart Colloquium, themed: Airports Concession and Options for Airports Development in Nigeria.
It was learnt that the Federal Government has begun the process to concession Lagos, Abuja, Kano and Port Harcourt airports to make them at par with their contemporaries across the globe.
The committee chairman said it was a glaring fact that Nigeria’s airports were not just underdeveloped, but also grossly underutilised.
According to him, the biggest challenge of privatisation may be immediate job loss resulting from downsizing as the airports presently absorb lots of Nigerians seeking for jobs.
Nnaji said he was in support of the recommendation of the Nigeria’s Annual Airport Business Summit reports that FAAN should be unbundled to address the problem of job loss and unemployment.
“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,” he added.
Nnaji said FAAN should be broken into: Nigeria Airport Development Agency, Airport Management Plc and Federal Airports Property Company Ltd., with specific functions that would enhance their efficiency.
Also, the Senior Transport Engineer, African Development Bank (AfDB), Mr Patrick Musa, said the Federal Government had approached the bank in 2017 with an Aviation Roadmap that would transform the sector.
Musa said the roadmap included airports concession, establishment of aircraft Maintenance, Repair and Overhaul (MRO) facility as well as an aerotropolis which needed the contribution of the private sector.
“What this means is that government alone cannot do it and they have to be innovative ways to enable the private sector play bigger roles through the Public Private Partnership (PPP),” he added.
Commenting, a former managing director of Aero Contractors, Capt. Dapo Olumide, faulted the call for unbundling of FAAN, saying that it would only increase the cost of running the agency.
Olumide said in spite of the legal issues which had trailed concession of the Murtala Muhammed Airport 2 between the Federal Government and Bi-Courtney Aviation Services Ltd., the terminal was still the best in Nigeria.