Home Airports Terminal Concession: Sirika explains responsibilities of FAAN, Concessionaires, assures No job loss

Terminal Concession: Sirika explains responsibilities of FAAN, Concessionaires, assures No job loss


The Federal Government says, the airport terminal buildings to be concessioned will generate its revenues from non-aeronautical resources.

This perhaps has put to rest what the FG is concessioning as the Minister today gave an update on the ongoing process regarding the airport concession.

Speaking during a virtual meeting with stakeholders, the Aviation Minister, Hadi Sirika lay bare what would be concessioned and what would be expected of the concessionaires.

According to him, “All other facilities at the airports and existing concessions outside the Airport Terminals will still be managed by FAAN”.

He adds, “the concessionaire will sign service level agreements with FAAN and NAMA to ensure that airport operates efficiently, the service level agreement will cover the Runway, Taxiway, Security and Air Traffic Management”.

“The concessionaire will provide the investment required to upgrade the existing terminals, take over the new terminals and maintain them over a period of time to be determined based on financial assessment of each transaction”.

As regards existing concessions, Sirika said, these existing concessions within the terminals would be inherited by the concessionaire and would be allowed to run its course before any review.Tariffs will be regulated in accordance with the procedures set in the concession agreement. 

Sirika stated that, as regards the passenger Service and Security charges, the concessionaires and FAAN would share of the charges which would be paid directly to FAAN by IATA.

On the service to be rendered by FAAN, the Minister stated that, the Airport Authority would be required to provide manpower through AVSEC for security of both the Airside and Landside, however the concessionaire would be expected to provide and maintain landside equipment but FAAN would continue to provide maintain Airside security equipment.

Again, Sirika stressed that the  airports in Nigeria were currently operating in a suboptimal environment that needed to be improved on with the Private sector participation. 

He stated that, the airports were in urgent need of infrastructure investments and modernisation, require investments in runway maintenance, navigation aids as well as terminal facilities.

“Relatively low asset utilisation due to the limited opening hours of other smaller Nigerian airports;Lack of terminal capacity as the Airports fall short of gates, stands and check-in desks”.

According to him, with the increasing population,  private operator of the four main airports in the country would be able to operate the airports with an international standard and expand the facilities in accordance with traffic demand at each airport.

The Airports have not been designed as international hubs but operate separate international and domestic terminals”.

He however noted that, only the private sector would be allowed to participate in the concession as no state governments would be allowed.

The Minister again emphasized that, there would be no job loss of any staff in FAAN instead, more jobs were to be created as currently, some airports were short of staff and as such more hands would be engaged, adding that more airports were being taken over by government.