Airport, Airport Security, Aviation, Aviation News

Operating 2026 airports on 2002 revenue – imperative of an upward review

Federal Airports Authority of Nigeria (FAAN)

 

With the hindsight of impact of  present day  double digit inflation on revenue that was last reviewed in 2002 and the need to operate a 2026 complaint airport infrastructure in Nigeria, Biodun Akomolafe writes on the need for upward review of the charges at airpports under the management of Federal Airports Authority of Nigeria (FAAN) if the facilities have to be ICAO compliant.

Considering the infrastructural decay witnessed at the 22 airports under the control of Federal Airports Authority of Nigeria (FAAN), one cannot but think of the  immediate need for replacement and or refurbishments, if airports particularly, the gateway, should be considered to go nearer to  preferred airports around the globe.

With the hindsight that airport infrastructure are prone to high turnover rates because of technology,  capital intensive and dollarised, the need to get huge and readily available huge funds to maintain and execute such infrastructure would remain an uphill task in an import dependent economic environment where tariffs and charges are significantly low in highly devalued local  currency.

To meet these very important financial obligations,  government has the option of  either providing the needed funds from its reserves,  borrowing,  concession or increase the revenue charges from the facilities.

With the present economic situation the country battles, the first three options are no longer feasible, especially with resistance from labour unions on the option of concession,  hence, the imperative of increasing charges at the airports.

Today, the conversation on the imperative of modern day FAAN airport charges is not merely a revenue argument. It is a national aviation safety, sustainability, and modernization argument. The reality is simple: To operate  world-class airports in 2026  Nigeria cannot continue to charge 2002 prices. The ssituation would be similar to pay peanuts to hire apes.

Therefore, the decision by FAAN to embark on upward review of its airport charges is necessary, timely, and beneficial for the entire aviation ecosystem. Let’s take a look at some indices.

Two Decades of Stagnant Charges in a Dynamic Industry

Airport charges in Nigeria have remained largely unchanged for over 20 years. During that same period, the global aviation industry has transformed, prices  of energy  have skyrocketed, security requirements have intensified, Inflation has eroded revenue value while maintenance and technology costs have doubled or tripled. Yet FAAN’s charges—many of which were set in the early 2000s—have not been adjusted to reflect new realities. This means FAAN has been using outdated revenue structures to fund modern airport operations.

Rising Operational Costs and Regulatory Demands

Airports today are not just travel hubs—they are complex ecosystems requiring 24/7 power supply, modern security technologies, firefighting and emergency response readiness.

Other more expensive operational cost are runway, maintenance, airfield lighting, staff training and recurrent certification, environmental management (in line with ISO 14001 and ICAO standards) and customer service enhancements (in line with ISO 9001).

Each of these comes with rising costs. For example, ICAO now mandates advanced security screening technology, emergency response upgrades, and environmental impact controls. These obligations require heavy capital expenditure—investment FAAN cannot sustainably make without appropriate cost recovery.

*The Infrastructure Gap: Why Nigeria Must Invest*

Most Nigerian airports need upgrades in terminal facilities, runway and taxiway rehabilitation, boarding bridges, baggage handling systems, apron expansion, power and cooling systems, perimeter fencing and lightning arrestors. These improvements require billions of naira. Without adjusting charges to reflect realistic cost-recovery models, FAAN cannot maintain critical infrastructure, improve airport safety, support airline growth, expand capacity for cargo and passenger traffic and also compete with regional airports like Accra, Kigali, Addis Ababa, and Johannesburg.

Safety and Security are non-negotiable in aviation 

Aviation is safety-critical, and airports must meet global benchmarks. But safety has a price. New charges will enable FAAN to invest in cutting-edge firefighting vehicles (CFTs), modern scanners and surveillance systems, airfield lighting and navigational aids, training for aviation security personnel, environmental protection systems and emergency operations centres.

More importantly, enhanced revenue will help FAAN maintain a state of continuous audit readiness for ICAO, NCAA, and other regulatory assessments.

Enhancing Passenger Experience and Service Quality

Passengers demand clean terminals, functional restrooms, working conveyor belts, fast security checks, good lighting and ventilation, reliable Wi-Fi and better customer service. These improvements cost money. Modern airlines also demand world-class ground handling environments to ensure quick turnaround and operational efficiency. Revised charges give FAAN the financial muscle to meet these expectations.

Nigeria must Align With Global Best Practices

whole most countries review airport charges between 3–5 years, Nigeria has not done so in more than 20 years. A review will surely bring  Nigeria closer to ICAO’s cost-recovery principles, International Civil Aviation Organization recommendations, Sustainable airport management models and Funding structures used by successful airport systems globally.

By adjusting charges, FAAN aligns Nigeria with models used in Europe, the Middle East, and Asia—where airports recover costs through transparent, regulated tariffs.

Supporting Aviation Growth and Economic Development

The aviation sector contributes massively to job creation, tourism, commerce, and national GDP. FAAN’s ability to upgrade airports is directly tied to attracting more international airlines, making Nigeria a West African aviation hub, supporting air cargo and e-commerce, boosting local tourism and improving regional connectivity among others. Without sufficient revenue, these opportunities remain underexploited.

*The Way Forward: A Well-Communicated, Transparent Process*

For the upward review to succeed, FAAN must continue to engage airlines, ground handlers, freight forwarders, aviation workers, passengers, the media and government stakeholders.

Transparent communication ensures stakeholders understand that revised charges are not punitive; they are necessary investments in safer, more modern airports.

Paying for the Airports Nigeria Deserves

Nigeria deserves airports that reflect its status, population, and economic potential. But world-class airports require sustainable financing. The current charges simply cannot support the infrastructure and safety requirements of modern aviation.

The imperative of new FAAN airport charges is therefore clear. They are to enhance safety, to modernize infrastructure, to improve service quality, to meet global standards and to make Nigerian airports competitive again.

Ultimately, the real winners are passengers, airlines, cargo operators, and the Nigerian economy.

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