Airport Charges Set to Rise as FAAN Seeks N735 Billion for Runway Repairs, Others
- FAAN has said that it needs over N735 billion to take care of runway repairs in airports across the country
- The agency's MD also says airport charges will increase soon, but they would try to keep it off till after the upgrade, to justify the increase
- MD Olubunmi Kuku added that FAAN would be making efforts to increase its revenue streams and explore partnerships in 2025 to fund these projects
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
The managing director of the Federal Airport Authority of Nigeria (FAAN), Olubunmi Kuku, has disclosed that the body urgently needs an injection of huge funds to repair facilities in airports across Nigeria.
The sum, which amounts to over N735 billion, would be used for runway repairs and other infrastructural needs, including pension liabilities.
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According to The SUN, Kuku stated this while on a tour of the airport facilities at Murtala Mohammed International Airport in Lagos state.
She noted that an increase in airport charges was long overdue, but FAAN is constrained by the facility deficit in the airports, hence the need to upgrade them before any hike.
Kuku stated;
“The tariffs are due for increase; however, we may have to push back on certain things because of the available facilities. We recognise that some of these tariffs are driven by the services that we offer, so we have to make sure that we can commensurate the services that we are offering with a tariff increase.”
Why FAAN needs N735 billion
Kuku addressed the pressing issue of pension liabilities, stating that while the pension backlog stood at N155 billion as of 2021, the amount could rise substantially after the ongoing valuation.
She explained that some of the agency's challenges, such as the ageing infrastructure of airports, including terminals and runways, affect both operational efficiency and people’s safety.
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Some runways and terminals in airports across the country were constructed in the 1970s and have exceeded the regular 25 to 30-year lifespan.
The repairs and refurbishments for runways across the country could take up to N580 billion, Kuku stated.
She explained;
“This affects operational efficiency and safety and necessitates substantial investment for modernization. Also, despite efforts to enhance security at airports, FAAN continues to face challenges in managing security risks, particularly with the increase in air travel and the potential for terrorist activities or other threats at key airport locations.”
In a previous report by Legit.ng, Kuku declared that 19 out of the 22 airports in Nigeria are financially unviable as the FG continues to cross-subsidise them.
He added that many airports are still using outdated equipment, such as old fire tenders, generators, air conditioning systems, and conveyor belts with worn-out slats, belts, and motors.
These lead to inefficiencies and increase maintenance costs. To address this, FAAN plans to modernise airport infrastructure by renovating terminals, expanding runways, and upgrading navigational aids.
Other FAAN needs
She stated that one of the agency's key priorities in 2025 will be the construction of a new, state-of-the-art headquarters for FAAN, designed to centralise operations and improve efficiency.
The focus will also be on enhancing critical facilities at major international airports and increasing the capacity of regional airports to accommodate rising passenger and cargo demands.
She added that a perimeter fence is also needed around FAAN lands, as they are being encroached upon across the country.
To support these ventures in 2025, FAAN will increase non-aeronautical revenues, such as advertising, cargo operations, real estate development, and commercial concessions.
The agency would also explore Public-Private partnerships for investment opportunities with the underutilised assets.
New airport to be constructed in Nigeria
Legit.ng earlier reported that the construction work for Gusau International Airport, Zamfara state, officially commenced on Thursday, June 20, 2044.
Dauda Lawal, the governor of Zamfara state, said the new airport was designed to accommodate domestic and international flights.
Speaking at the flag-off ceremony held at the airport site on Kaura Namoda Road, Gusau, the governor said the airport will be smart and equipped with modern facilities.
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Source: Legit.ng
