The Federal Airports Authority of Nigeria FAAN says it revenue has struck and has been constrained due to government waivers, delay in review of rates, court cases among others.
The Managing Director FAAN, Captain Hamisu Yadudu who stated this in his presentation of the agency’s achievements and challenges before the House Committee on Aviation during the oversight visit to FAAN, said on an annual basis Government waiver policy of 65% of gross revenue accruing from annual pilgrimage operations amounted to between $3Million – $4Million.
“This amount is not passed on to the passengers but to the airlines”.
He noted that the agency was yet to review its rates and tariff for over 7 years now to reflect the realities of today, “Bureaucracies, bottlenecks and delays in review of rates/tariff on services. – The last time the Authority reviewed her charges was in 2011 over seven years ago and obviously requires realignment with current realities”.
While lamenting the challenges they grapple with, Yadudu said court cases and Litigations instituted against the Authority was also a major headaches.
“Some of the litigations resulted in judgement debts which the Authority had to defray”. “Capacity and Contribution of Airports to revenue generation, MMIA and Abuja mainly sustains other Airports”.
The FAAN boss said no thanks to the state of the economy which had not only affected them but also the airlines with the resultant effects of reduction in fleets, frequencies and total withdrawal of operations.
“Debts arising from revenue generation e.g ARIK and AERO debts”.
He added, “Rising operating and maintenance cost of the new terminals and existing ones due to inflation and devaluation of the Naira”.
In pursuant of its mission and vision, the MD FAAN noted that several areas have been identified for improving its revenue, these includes; full automation of car parks, cargo operations and other Revenue points which was on-going.
Other areas are; metering of all customers to ensure current and full amount are recovered for electricity consumptions.
“Continuous reconciliation and renegotiation of outstanding debts to ensure better recoveries.Continuous engagement of customers to comply with the payment terms provided in the credit policy manual and enforcement of sanctions against reluctant or recalcitrant customers”.
“Introduction of Pay as you go system on some Revenue Heads especially with difficult customers”.
Yadudu solicited Federal Government’s support in collecting AMCON related debts such as ARIK and AERO among others.