Eighty percent of Nigerian airports are performing at a loss. Some airports generate between $1,000 (N1.5 million) and $7,000 (N10.5 million) annually, yet the amount of money spent to keep them in operations is far higher than their revenue generation. OLUSEGUN KOIKI writes.
The Federal Airports Authority of Nigeria (FAAN) is battling to manage 22 Federal Government-own airports in the country, while more are still being handed over to it by the various State governments.
Most of the airports are drainpipe on the finances of FAAN in particular and the Federal Government as a whole.
A document sighted by Daily Independent Newspaper recently, indicated that 16 out of the 20 airports in the country contributed a merely 3.6 per cent revenue, showing merely N13,856,975,750.96 generation to the finances of FAAN in its N382,149,252,045.35 billon revenue earning for 2024 from January 1 to December 31, 2024.
The other four airports; Lagos, Abuja, Kano and Port Harcourt, generated a massive 96.4 per cent contributions, indicating N368,292,276,294.04 despite all the loopholes in the finances of FAAN.
Stakeholders say that if all the leakages in revenue generations by FAAN are ploughed, the agency’s revenues could almost double what it generated in 2024.
The Murtala Muhammed Airport (MMA), Lagos as usual, generated the highest percentage of revenue for FAAN in the past year with 67 per cent.
The breakdown of the document showed that Lagos airport generated N256.067,290,722.42 in 2024, indicating 67.0 per cent of total revenue for FAAN within the period.
Also, FAAN collected N235,669,374,425.91, showing 65. Per cent within the period from the Lagos airport.
At the Nnamdi Azikiwe International Airport (NAIA), Abuja, FAAN generated N81.219,777,298.06 between January 1, 2024 till December 31, 2024, indicating 21.3 per cent revenue generation, while FAAN collected N77,385,973,000.04, showing 21.6 per cent within the same period.
Mallam Aminu Kano International Airport (MAKIA), Kano, was third on the log with N20,240,994,797.18, showing 5.3 per cent of total revenue generated by FAAN in 2024, while the agency recovered N19,946,374,506.48, indicating 5.6 per cent of revenue collected by FAAN in the year under review.
Port Harcourt airport had N10,764,213,476.76 revenue generation, making it 2.8 per cent of the total sum.
FAAN also collected N10,221,740,323.62, making it 2.9 per cent total revenue collected at Port Harcourt by FAAN in 2024.
FAAN headquarters also generated N6,532,782,761.23 revenue in 2024, showing 1.7 per cent revenue generation within the period, while it further generated N8,176,471,816.89, showing 2.3 per cent revenue recovered in 2024.
Also, FAAN generated N3,617,003,400.91 from Enugu airport, showing 0.9 per cent of total revenue generation for FAAN, while the agency collected N3,537,184,578.44, indicating 1.0 per cent collection for FAAN within the period.
Sokoto Airport earned N298,631,224.09, showing 0.1 per cent generation for FAAN, while the agency collected N224,185,023.20, indicating 0.1 per cent for the agency within the period.
Besides, Benin airport earned N678,664,740.10, indicating 0,2 per cent within the period and recovered N636,219,777.55 per cent, showing 0.2 per cent for FAAN.
For Yola airport, FAAN generated N316,910,437.08, showing 0.1 per cent revenue generation in 2024, while the agency recovered N302,808,561.19, showing 0.1 per cent of revenue collected within the period.
Owerri airport in Imo State made N641,504,790.99 for FAAN, showing 0.2 per cent of total revenue generation for the agency within the period, while the agency earned N561,645,104.34, showing 0.2 per cent revenue collection for FAAN between January 1 and December 31, 2024.
Margaret Ekpo International Airport in Calabar, generated N292,698,672.20 for FAAN in 2024, showing 01 per cent, while the agency also collected N251,697,867.48, showing another 0.1 per cent revenue collected by the agency within the same period.
Besides, Maiduguri earned N396,587,013.90, indicating another 0.1 per cent for FAAN, while the agency also recovered N392,075,373.62, showing 0.1 per cent within the period.
Jos airport in Plateau State earned N96,972,242.90 for FAAN, showing 0.0 per cent for FAAN within the period, showing, while the agency also collected N81,629,200.51, also showing 0.0 per cent collection for FAAN in 2024.
Kaduna International Airport also generated N91,573,066.35, showing another 0.0 per cent revenue generation for FAAN, while FAAN generated N74,314,663.28 of 0.0 per cent for FAAN in 2024.
The recently shutdown Ibadan Airport in the South West of Nigeria, earned N278,164,755.03, showing 0.1 per cent revenue generation for FAAN, while the airport earned N241,512,393.43, showing 01 per cent for FAAN within the period.
Also, Ilorin International Airport, earned N247,752,677.70 for FAAN in 2024, indicating 0.1 per cent revenue generation for the agency within the period, while the sum of N247,653,618.43, showing 0.1 per cent was the total revenue collected by FAAN at the North Central airport.
Besides, FAAN earned only N51,555,347.43 from Minna airport in Niger State in the 12 months of 2024, showing 0.0 per cent revenue generation, while it collected N39,566,766.63, indicating another 0.0 per cent for the agency within the period.
Akure airport in Ondo State earned N190,678,326.74, showing another 0.0 per cent generation for FAAN and recovered N183,459,489.62, indicating 0.1 per cent collection within the period.
Katsina airport made N113,779,8932.35, showing 0.0 per cent for FAAN in the past years and the agency collected N106,749,658.31, showing 0.0 per cent collection within the period.
For Makurdi airport in Benue State, FAAN earned N10,142,534.93, showing 0.0 per cent, while the agency collected N9,419,606.93, showing another 0.0 per cent recovery within the period by the agency at the airport.
At Zaria controlled by the Nigerian College of Aviation Technology (NCAT), FAAN earned a paltry N1,598,927.00, indicating 0.0 per cent for FAAN within the period, while it collected N1,598,927.00 of 0.0 per cent within the period.
However, despite the viability of the four airports as mentioned above, the Federal Government was still bent on concessionig the airports, while the remaining 16 non-viable airports are not considered for concessioning by the government.
But, some of the aviation analysts said the government should still go ahead with its concession plans for the airports.
Capt. Mohammed Badamasi, aviation expert, threw his weight behind the concessioning of the airports.
He, however, said that the exercise should be done with transparency and should devoid of favouritism.
Badamasi, argued that no major airport anywhere in the world was being operated by the government 100 per cent and wanted Nigeria to take a cue from this.
He said: “If the government can concession the airports properly without corruption involved in it and all stakeholders participate, I think it will go a long way in giving credibility to the process.
“If you look at our airports today, the entire infrastructure are in decay, particularly our runways and taxiways. We need to consider all those things. If we are going to bring in any concessionaire, these are some of the things that we will table before them, give them conditions to revamp them within a given period. I am in support of transparent concession processes.”
He also said that the government could not force the perceived non-viable airports on concessionaires; rather the government could devise a means of making such airports viable and productive.
Also, Capt. Samuel Caulcrick, another aviation expert, said that the huge disparity not only highlighted the inequality in revenue across Nigerian airports, but also signaled an urgent need for a more equitable development strategy.
Caulcrick, explained that irrespective of the financial generation by the four airports, concession was still the way out for enhanced revenue generation.
He, however, proposed an innovative hybrid concession model that could revolutionise the approach.
According to him, this model would require concessionaires of profitable airports to also take on the responsibility of developing two or more less viable airports.
He expressed that this model would benefit the Federal Government and the entire nation through a boost in investment in “forgotten airports.”
He added: “Champion Regional Growth: This initiative will promote economic revitalisation in underserved regions, breathing life into local economies.
“Enhance Air Connectivity: Improving links between urban and rural areas will streamline travel across the country, making air travel accessible to more Nigerians.
“Boost Efficiency and Sustainability: A focused development approach will lead to better management practices and sustainable growth for FAAN.
“Of course, there must be clear timelines for the concessionaires to ensure they meet their development obligations. Accountability is key to guaranteeing that these commitments lead to real change.”
Caulcrick, explained that the proposed hybrid concession model would not only address economic viability, but would also champion regional development, paving the way for a balanced, sustainable future for all Nigerian airports.
Comrade Ocheme Aba, the General Secretary, National Union of Air Transport Employees (NUATE), said that the position of the union had not changed on concessioning of major airports by the government.
According to him, one of the critical positions of the union was the adequate settlement of all staff to be affected by the exercise through strict adherence to labour by the Federal Government.
He reiterated that without this, the union, just like others, would continue to kick against the exercise.
Besides, Comrade Abdulrazaq Saidu, the General Secretary, a union leader, described the attempt to concession some of the airports by the government as an “act of impunity.”
According to him, the agencies are governed by the Acts setting them up, stressing that before any of the airports could be concessioned, the Act setting up FAAN for instance must be amended to accommodate the policy.
(daily independent)
