The Federal Executive Council, FEC, has approved the concession of the Nnamdi Azikiwe International Airport (NAIA), Abuja, and Mallam Aminu Kano International Airport (MAKIA), Kano.
This is in line with the Aviation Roadmap, approved by President Muhammadu Buharu on 18th October 2016.
The Special Assistant on Public Affairs in the Ministry, James Odaudu says, this achievement signifies a notable milestone in our steadfast commitment towards revitalizing the nation’s aviation sector.
He named the preferred bidder for the concession as Corporacion American Airport Consortium composed of The Corporation American Airports, Mota Engil Africa, and Mota Engil Nigeria.
“Following a thorough and comprehensive evaluation process that commenced with the Request for Qualification (RFQ) advertised in local and international media on 16th August 2021, and subsequent rigorous evaluation of technical and financial bids, coupled with due diligence visits conducted from 27th – 29th December 2022 and 9th – 10th January 2023, the Corporacion American Airport Consortium has emerged as the preferred bidder”
Explaining the benefits of the concession, Mr. Odaudu said, the concession of the Abuja and Kano airports will considerably enhance the operational efficiency and profitability of these airports, repositioning them to operate optimally and competitively.
“The Corporation American Airports, a New York Stock Exchange (NYSE) listed airport operator, has presence across three continents, managing 53 airports in six countries and serving approximately 82.4 million passengers in 2019”.
The concession agreement for Abuja airport is will be effective for twenty years and thirty years for Kano.
In addition, the Corporacion American Airport Consortium is to make upfront payments of USD 7 million for Abuja and USD 1.5 million for Kano Airports.
In the agreement, during the concession period, 70% of the total projected nominal revenues accruable from the combined Concession of both airports will be payable to the Federal Airports Authority of Nigeria (FAAN), thereby generating additional revenue sources for the Federal Government.
The partnership with the Corporacion American Airport Consortium, the aviation minister Senator Hadi Sirika says, underscores the Administration’s dedication to improving the standards of the nation’s airports, providing world-class services to all travellers and generating considerable economic benefits for the country.
According to him, the concession will herald a new era of excellence in Nigeria’s aviation industry.
In a related development, the Federal Executive Council also approved the change of nomenclature of the Federal Ministry of Aviation to the Ministry of Aviation and Aerospace with immediate effect.