Business
FAAN Laments 95% Revenue Fall, Hikes Service Charges By 100%
The Federal Airports Authority of Nigeria (FAAN), yesterday, said that 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 N1,000 to N2,000 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 percent. 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 N1,000 charge was no longer realistic and that it did not correlate with realities of cost-related inflation rate which the Central Bank of Nigeria (CBN) 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 N344.38 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 will have a shortfall of over N16billion 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 N2,000 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 (NCAA) 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 United States Trade Representative (USTR) has criticised Nigeria’s import ban on 25 categories of goods, claiming that the restrictions limit market access for American exporters.
This is the effect of President Donald Trump’s tariffs introduction on goods entering the United States, with Nigeria facing a 14 per cent duty.
The USTR highlighted the impact of Nigeria’s import ban on various sectors, particularly agriculture, pharmaceuticals, beverages, and consumer goods.
The restrictions affect items such as beef, pork, poultry, fruit juices, medicaments, and alcoholic beverages, which the United States sees as significant barriers to trade.
The agency argues that these limitations reduce export opportunities for United States businesses and lead to lost revenue.
“Nigeria’s import ban on 25 different product categories impacts United States exporters, particularly in agriculture, pharmaceuticals, beverages, and consumer goods.
“Restrictions on items like beef, pork, poultry, fruit juices, medicaments, and spirits limit United States market access and reduce export opportunities.
“These policies create significant trade barriers that lead to lost revenue for United States businesses looking to expand in the Nigerian market”, the agency said .
In 2016, Nigeria implemented the ban on these 25 items as part of efforts to control imports and stimulate local production.
Some of the banned items include poultry, pork, refined vegetable oil, sugar, cocoa products, spaghetti, beer, and certain medicines.
On March 26, 2025, the Federal Government also announced plans to halt solar panel imports to encourage local manufacturing as part of its push for clean energy.
A leading agribusiness strategist and digital agriculture expert, Ayo Oluwa Okediji, has sought cooperative-driven investments in sustaining growth of poultry industry in Nigeria.
He said the poultry industry was at a defining moment and requires urgent structural reforms to secure its future and ensure long-term sustainability.
Speaking on the theme, “Strengthening Poultry Farming Through Cooperative Synergy and Strategic Investments”, at the recently concluded Oyo Mega Poultry Workshop 2025 in Ibadan, Okediji called on poultry farmers, cooperative leaders, financial institutions and policy makers to rethink the existing structure of the poultry sector.
He stressed the need to transition from fragmented, individually-driven operations to well-structured, cooperative-led enterprises capable of attracting sustainable financing and securing long-term viability.
He said, “Our poultry sector cannot thrive on individual effort alone. We need to organise ourselves into cooperative clusters, build strong governance systems and position ourselves to attract the level of investment needed to sustain this industry beyond this generation.”
Drawing on lessons from successful global cooperative models such as Rabobank in the Netherlands and Landus Cooperative in the United States, Okediji introduced the FarmClusters Poultry Model, a locally adapted solution developed by Agribusiness Dynamics Technology Limited (AgDyna), a subsidiary of AgroInfoTech Africa.
According to him, the model is currently being piloted in Oyo State in partnership with PANOY Agribusiness Limited and local poultry cooperatives.
The Rivers State Representative of the Nigeria Chambers of Commerce, Mines, Industries and Agriculture (NACCIMA), Mr. Erasmus Chukwundah, has urged palm oil farmers to consider hybrid seedlings for planting, if they must break even in palm oil business.
Chukwundah said this recently at the Free Oil Palm Business Climate Smart Best Management Practice/Assistance Training organized by Partnership Initiative In Niger Delta (PIND) for Palm Oil Farmers in Elele, Ikwerre Local Government Area.
The Rivers representative said until palm oil farmers begin to consider such hybrid oil palm seedlings, they may not meet up with the daily increasing demand of palm oil in the market.
According to him, the seedlings produce up to 30 bunches at once that ripen same time.
He said PIND decided to partner with Oil Palm Growers Association of Nigeria (OPGAN) to ensure that the message was received by the targeted audience.
According to him, palm oil remained a popular choice of industry operators as it could be converted to many other products such as vegetable cooking oil.
He also noted that products such as motor tyers, marine ropes and others are now gotten from the palm tree.
Chukwundah, who is the immediate past Director-General of Port Harcourt Chamber of Commerce, Mines, Industries, and Agriculture (PHCCIMA), further warned against use of unrecommended fertilisers in growing oil palms.
He noted that such practices could limit its export value or chances as the foreign marketers have a way of detecting such .
He reiterated the need for organic fertilizers, including poultry droppings, to enable them have a natural palm oil.
“People must reduce physical contact with palm oil production. That is why we are campaigning for hydrolic oil mills. The foreign markets are no longer interested in crude method of palm oil production”, he said.
Meanwhile, one of the farmers, Sonny Didia, who appreciated Chukwundah’s commitment towards the concern of farmers, appealed for an urgent need for loan opportunity with low interest rate in order to enable them beat the target.
King Onunwor