Business
FAAN Laments 95% Revenue Fall, Begins New Service Charge
The Federal Airports Authority of Nigeria (FAAN), yesterday, said its revenue has dropped by over 95 per cent in the wake of the lockdown declared to curtail further spread of COVID – 19.
Its Managing Director, Rabiu Yadudu , said this at a Press conference in Abuja, while responding to a question on why FAAN decided to effect a 100 per cent increase in Passenger Service Charge at this time.
The increase of PSC from N 1, 000 to N 2, 000 per passenger for domestic flights , Yadudu said , would take effect from September 1 and had been communicated to all airlines.
“The increase is a matter of necessity . Our revenue is down by over 95 per cent . In that case , we will do whatever we can legitimately to ensure we carry out our duties.
“We need to survive. There is no better time than now for FAAN to do this ,” he said.
Describing airport management as capital intensive , Yadudu noted that FAAN has not increased PSC since 2011 despite all the huge capital investments at the nation ’s airports.
He said the current N 1 ,000 charge was no longer realistic and that it did not correlate with realities of cost -related inflation rate which the Central Bank of Nigeria put at 12 .82 per cent.
The managing director said FAAN , until late 2019, was collecting naira equivalent of PSC at an official rate of between N305 . 50 and N 344 .38 to a dollar while airlines were collecting at subsisting market rate of about N362 to a dollar.
He added that the Federal Government is increasing its direct deduction from FAAN to 40 per cent from 2021.
He said with such deduction, FAAN would have a shortfall of over N 16 bn on overhead cost, hence, the authority decided to engage the government in order to be exempted from the deduction. Yadudu said: “It has, therefore become imperative to review the Passenger Service Charge from N1,000 to N 2,000 per passenger.
“This review which takes effect from September 1 , 2020, has already been communicated to the airlines .
“We therefore implore stakeholders , airport users and the general public to bear with us as FAAN is laden with so much overhead cost of operation”.
The Managing Director said as the nation prepares for the resumption of scheduled international flights , new advisories for airlines and air travellers would be rolled out.
He said the advisories would be made public as soon as they are ready.
While answering a question on the latest on the latest on the alleged violation of COVID -19 protocols by VIPs at the nation ’s airports , Yadudu said the task was being handled by the Nigerian Civil Aviation Authority and the they nation would hear from the authority as soon as it is ready.
He also said the NCAA was working with the Ministry of Aviation and airlines on the planned resumption of scheduled international flights .
“Don ’t let us assume all airlines will be ready by that time . We are opening our door , it is left for the airlines to come through the door ,” he said about the resumption in international flights.
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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