- On-board meals: Minister directs foreign airlines to patronise local catering for outbound flights
- Disused airplanes hamper security, airport aesthetics
- Bi-Courtney Aviation Services Limited Celebrates Customer Service Week
- Solace in private sector to close aviation infrastructure deficit gap
- Experts: IGR insufficient to tackle decaying aviation infrastructure
Meggison: FAAN’S N52.5b IGR Inadequate For Aviation Devt
- Faults concession, backs deregulation
The Federal Airports Authority of Nigeria (FAAN)’s Internally Generated Revenue (IGR) is insufficient to sustain its network of airports at the current pricing regime, Chairman, Airline Operators of Nigeria (AON), Capt. Noggie Meggison, said.
Besides, he noted that all the airports have low level of traffic, a development the expert attributed to the inadequate route development by domestic airlines.
He disclosed these in a paper obtained by Woleshadare.net in Lagos. FAAN’s IGR for 2016 was said to be N52. 5 billion.
But there are indications that it could be more, considering the fact that the agency collects $60 per passenger and if that is multiplied by six million passenger traffic recorded for international traffic, it amounts to $360 million (N57.7 billion with foreign exchange rate of $1/160 as at last year).
READ ALSO: Flight cancellations, bird strikes likely as harmattan haze begins, NiMet issues advisory
The amount was arrived at after computing both aeronautical and non-aeronautical revenue generation within the year 2015.
Meggison noted that the situation has also led to insufficient safety and security equipment and trained personnel.
His words: “FAAN can provide for renewal of assets as well as its own working capital from IGR if the revenue pricing is appropriate. The agency can then be taken off the Federal Treasury in compliance with provisions by the Bureau of Public Enterprise mandate of graduating from partial to full commercialisation.”
“If states continue to support their airports with basic services, the passenger traffic volume over the entire network will be enhanced.”
He said that there should be systematic modernisation of airports development and management in line with international best practices, stressing that FAAN should be allowed to operate as a fully commercialised entity, and be allowed to run professionally.
He disclosed that the near insolvency of the agency forced it to go to China for China’s $500 million loan, an equivalent to N152.5billion to be paid in 22 years, which is currently being used to build the four International terminal buildings at the Murtala Muhammed International Airport, Lagos, the Mallam Aminu Kano International Airport, Kano, the Nnamdi Azikiwe International Airport, Abuja and the Port- Harcourt International Airport.
The repayment is about N6.9billion per year or N578million per month. This would enable FAAN to increase passenger capacities from 15 million annually to 46 million passengers for these four International airports.
Speaking on the controversial concession of four of the aerodromes, the AON chief said the entire exercise would destabilise economic and social operation and the workforce, describing the exercise as, “usually very fraudulent in Nigeria.”
He said: “Anybody who wants to concession a profitable and ongoing concern doesn’t mean well for the organisation. They can equally build their ultra-modern terminal buildings side by side with FAAN’s structures in these International Airports and let us compete.
“This is the true spirit of business development. But coming to disposes FAAN of its new terminal buildings is reaping where they have not sown and this is pure stealing.”
Google+
