Airport, Aviation, Business, News

House Committee chairman calls for unbundling of FAAN before airport concession

by Biodun Akomolafe Views:
Patrick Tamba Musa, Senior Transport Engineer, African Development Bank (AFDB); Hon.Nnolim Nnaji, Chairman, House of Representatives Committee on Aviation; Simon Tumba, CEO/Publisher, NTM; Captain Dapo Olumide, CEO Ropeways Transport Limited; Ali Magashi, CEO, Kitari Consult Limited at the 2019 NigerianTravelsmart(NTM) Colloquium recently in Lagos.

As the debate on concessioning of some airports in Nigeria gathers momentum, the Chairman, House of Representatives Committee on Aviation, Hon Nnolim Nnaji has suggested the review the Act that established Federal Airports Authority of Nigeria ( FAAN) and unbundle the agency into three functional entities.

Nnaji who represents Enugu Federal Constituency in the national assembly argued  that without first unbundle FAAN, Nigeria may not success in her efforts to concession some of her airports.

Speaking today at an annual colloquium organised by Nigerian TravelMart (NTM) with the theme: Airport Concession and Options for Airports Development in Nigeria held at RKO Hotels and Suites, Victoria Island Lagos said: ” The Act that set up FAAN giving it the power to dominate in an area that can be opened for private sector entry has to be reviewed.

The unbundled of FAAN may lead to a more more efficient and progressive airport development and an enabling environment that will attract private sector investments and tourism development in Nigeria”

According to him, the following three organisations are proposed to emerged from the process; Nigeria Airport Development Agency, Airport Management Company PLC and Federal Airports Property Company limited.

In the meantime, to get the nation airports to global standard to attract good global market value, Nnaji also suggested  that the yearly 25 per sent remittance from the aviation agencies should be suspended for now and be kept in a consolidated account from where it would be expended on developing infrastructures in the aviation under, a ten year development programme for the sector

“I am not very impressed with the state of most of our local and international airports. This is why in my contributions during the preliminary debates  on the 2020 Budget on the floor of the house of Representatives, a couple of days ago. I suggested that the remittances from Internally Generated Revenues (IGRs) of the aviation agencies should be retained for the next ten years for the development of aviation infrastructure”

Earlier in his welcome address at the forth edition of the Colloquium, the host and the Chief Executive Officer, NTM  and ,Chief Host,  NTM Colloquium 2019, Mr. Simon Tumba  reasoned that despite the huge investments made by the federal government on the gateway airports without getting the desired results, there is the need to change static and think outside the box by bring in private sector participation,  especially at a time its revenues dwindle and faced with contending demands.
“For decades we have seen the state of our airports, especially our major gateways in Lagos, Abuja, Enugu, Port Harcourt, Kaduna and Kano. Over the last few years the Federal government has made investments to enhance  the customer experience in these airports. Truth be told; we are lagging behind, despite the efforts of the Federal Airports of Authority (FAAN)”
Adding, “The Federal government has approved N14billion to renovate the Murtala Mohammed International Airport, Ikeja, which is nearly $40 million,”
“Taking cognizance to the dwindling revenue of the government, very demanding social needs and the increase of our debt profile as a nation, one may say the government is doing its best. However $40 million is not enough for an emerging market like Nigeria, a country with every potential to be a global hub. The government needs to think out of the box!” Tumba said.
He added, “Our humble opinion in NTM is that the government should explore a Public Private Partnership (PPP) and Concession our airports carrying along the workforce at FAAN. With Nigeria’s God given natural and Human Resources, and a solid leapfrogging plan and strategy, we should be aiming for a futuristic airport of $2-5 billion. We have the population, the market and geographic position to make and realize such aspirations”.
On union matters in the concession processes, Tumba noted, “The aviation unions who are averse to concession of our airports are merely shootng themselves in the foot, and in the long run, may end in regrets and  bitter cries.”

One Comment

  1. Omolara Olumuyiwa olufemi
    October 25, 2019 at 11:29 pm  ·  Reply

    Well done

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