Management of Federal Airports Authority of Nigeria (FAAN) has said that it proposed to increase its revenue generation in year 2022 by over 50 per cent of what it generated in year 2021.
This was disclosed over the weekend by the Managing Director Chief Executive Officer of FAAN, Captain Rabiu Yadudu during the oversight visit of the Senate and House of Representatives Committees on Aviation to Lagos annex office of the authority.
Yadudu who said that FAAN proposed a revenue budget of One Hundred and Eighty Eight Billion Naira only (N188Billion) for the financial year against One Hundred and Twenty Five Billion Naira only (N125 billion) projected in 2021, expressed optimism that negative effects of the COVID 19 pandemic on the sector would have been brought to an end; leading to improved aero and non-aeronautical revenue bases.
“The Authority is proposing a Revenue Budget of N188Bill for the year 2022 as against N125.4Billion approved for the year 2021, this gives an increase of 50.4%. This projection was arrived at with the hope that the effect of the pandemic would have been over thereby leading to an increase in passenger traffic, as well as boost in the non-aeronautical revenue base of the Authority as already highlighted in the 2021 Budget performance,” he said.
The FAAN’s chief executive officer added that the authority would focus its attention to increase non-aeronautical sources of revenue generation to achieve the projected revenue even as he promised aggressive debt recovery.
“We have identified the following areas for improving revenue: Focus on Airports that are not breaking even with the aim of making them perform. Increase adverts especially on below the line items,” he added “steps have been taken to terminate all non performing advert concessions, aggressive debt recovery,
Intensive marketing of the non-aeronautical revenues,
Introduction of Pay-As-You go system on some Revenue Heads especially with difficult customers, enforcement and continuous monitoring of the cashless policy of FAAN.
Yadudu who also said effective and cost reduction approach would be embraced at increasing the revenue drive, affirmed that blocking of all financial loopholes or leakages and commencement of cashless policy would be vigorously pursued even as he insisted that implementation of recommendations of the management committee on efficiency/cost reduction with mandate to ensure judicious utilization of government resource;
and strict monitoring and evaluation.
He added that a review of policies, procedures and processes to enhance effectiveness and efficiency that would lead to strengthening the internal audit and controls would not be left out.
As a matter of fact, this increment will certainly discourage flying public. Nobody enjoys anything again in Nigeria.
May God safe us.