News

Keyamo Gives Reasons 19 Airports May Be Concessioned

Published by admin on July 20th, 2024.

Keyamo Gives Reasons 19 Airports May Be Concessioned

By Deborah Tolu-Kolawole

The Federal Government is considering the concession of 19 Nigerian airports to enhance their economic viability, according to the Minister of Aviation, Festus Keyamo, SAN. In an interview with our correspondent in Abuja, Keyamo revealed this potential strategy among other measures.

FIRST CLASS GISTS reports that the Managing Director of the Federal Airports Authority of Nigeria (FAAN), Olubunmi Kuku, noted that only three out of the 22 airports under FAAN’s management are profitable and significantly contribute to the aviation sector’s growth.

Kuku, speaking on a recent Channels TV morning show, explained that 19 of the nation’s airports are being subsidized due to insufficient passenger traffic to cover their operational costs. She highlighted the need for maintenance and upgrades in critical infrastructure, including terminal areas, the landside, and the airside.

The findings align with a Saturday PUNCH report indicating that only four out of over 30 airports in the country are economically viable, contributing N5.57 trillion to foreign trade over 51 months. The four airports—Nnamdi Azikiwe International Airport, Murtala Muhammed Airport, Kano, and Port Harcourt—generated a total of N529.68 billion in exports and N5.05 trillion in imports between January 2020 and March 2024.

These statistics suggest that most airports are not economically sustainable to support foreign trade, despite various state governments’ plans to construct new airports to attract trade.

In the interview, Kuku mentioned FAAN’s plan to provide cross-subsidies to some new airports under development.

Discussing plans to improve airport viability, Keyamo stated, “We are exploring different options, including concessions, to make them viable.”