The Managing Director, Federal Airports Authority of Nigeria, (FAAN), Capt. Rabiu Yadudu says, it will terminate the non-performing concession agreements and engage new concessionaires and apply stiff sanctions on private airport terminals for non-payment for various services rendered by FAAN.
He said, plans are underway to ensure that the financial difficulties of FAAN is brought to the barest if actions are taken to ensure that all those indebted pay up what they owe.
In his address of welcome during the oversight visit of the joint Committees on Aviation of the National Assembly to Lagos airport, Capt. Yadudu stated that, the Authority has shifted its focus from the aeronautical sources of revenue to the non-aeronautical so as to further improve the revenue performance.
And to this end, it has commence an aggressive sensitization with respect to areas at the airports where investors can come in, “Specific areas where effort is being focused on include: Advertisement, car parks, Private Airport Terminal operators and Bi-Courtney (BOT) revenue sources”.
“On advertisement, the Authority is taking steps to terminate the non-performing concession agreements and engage new concessionaires”.
He adds, “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”.
Capt. Yadudu also disclosed that, the Authority is proposing a Revenue Budget of N188Billion for the year 2022 as against N125.4Billion approved for the year 2021, which gives an increase of 50.4%.
According to him, the 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.
Capt. Yadudu noted that, FAAN is still faced with some challenges on debt recovery most especially on debts owed by ARIK Air which constitutes a significant portion of the Authority’s debt portfolio.
While commending the effort of the Committees on Aviation with respect to intervention so far in the recovery of ARIK debts inherited by the Asset Management Corporation of Nigeria (AMCON), called for further assistance to bring the issue to a logical conclusion as the huge debts are still outstanding.
In spite of the effect of the pandemic during this period, the FAAN boss mentioned 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 and this has impacted on has ability to adequately meet up with our obligations.
