FAAN eyes more revenue generation in 2022
L:R Senator Olujimi, MD FAAN, Capt. Rabiu Yadudu, Senator Smart Adeyemi, chairman senate committee on aviation, Nnolim Nnaji, chair ma, House of Reps. Committee on aviation during their joint oversight visit to Lagos airport.
The Federal Airports Authority of Nigeria has proposed a revenue budget of
N188Billion for the year 2022 as against N125.4Billion approved for the year 2021.
The Managing Director, Federal Airports Authority of Nigeria, FAAN, Captain Rabou Yadudu disclosed this during the joint oversight visit of the senate and House of Representatives Committees on Aviation to Lagos airport.
According to him, 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.
According to statistics, at the moment, the Passenger Traffic is still about 56% of Pre-COVID traffic and the year 2021 is described as a better year when compared with 2020.
With the reduced passenger traffic and revenue generation, the Managing Director, Federal Airports Authority of Nigeria, FAAN, Captain Rabiu Yadudu said, to shore up the revenge performance of the agency, attention had been shifted from the aeronautical to non aeronautical sources of revenue.
He disclosed that, aggressive sensitization was on going with respect to areas at the airports where investors can come in, these include Advertisement, car parks, Private Airport Terminal operators and Bi-Courtney Build Operate and Transfer, (BOT) revenue sources.
“On advertisement, the Authority is taking steps to terminate the non-performing concession agreements and engage new concessionaires. We hope to make significant progress before the end of 2nd quarter. Car parks Automation at the various Airports is presently ongoing, before the end of the year we should have achieved a great result.
“On the Private Airport Terminals, stiff sanctions are going to be applied for non-payment for various services rendered by FAAN”.
Captain Yadudu appealed to the National Assembly to assist FAAN in the collection of debts owe it by Arik Air running into billions of naira as well as other airlines.
He stated that, even though FAAN does not have operating surplus, it remitted
N16.7Billion to the Federation Account as contribution to the Consolidated Revenue Fund as at the end of December 2021 in spite of the effect of the pandemic during this period.
On the new International airport terminal in Lagos, the MD FAAN said, its would be opened March next month as the New Terminal had reached 98% completion while that of Kano and Enugu New Terminal would follow.
“The Authority has strategically positioned itself to ensure that it has modern and up to date high-tech equipment and facilities that will aid better security, safety and comfort of all stakeholders”.
Responding, the chairmen of the senate and House of Representatives Committees on Aviation, Senator Adeyemi Smart and Mr. Nnolim Nnaji assured the agency of their support in addressing the infrastructural deficit in the industry.
They emphasized that the oversight visit was to gather enough information that would help them articulate inputs that affects the industry.