FAAN Generates N408.69bn From Passengers’ Service Charge

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Following series of reforms in the nation’s aviation sector, the Federal Airport Authority of Nigeria FAAN), earned about N408.69 billion within a period of five years.

The amount, according to figures released by an aviation security consultant and Secretary General of Aviation Safety Round Table Initiative (ASRTI), Group Captain John Ojikutu (rtd), was realised between 2015 and 2019 from Passenger Service Charge (PSC) covering international and domestic operations.

Lamenting the high  level of under declaration in internally generated revenue at airports across the country, Ojikutu said the N408.69 billion was realised from just two out of 16 revenue sources controlled by FAAN.

In the data made available to our correspondent, the renowned aviation analyst lamented that the inaccurate or unaccounted earnings could be the exploitation in the work of some insiders threats to national security.

He, however, called for urgent investigation into the losses in revenue amounting to several billions of naira in the past five years.

The Minister of Aviation, Hadi Sirika, had on Tuesday last week disclosed that the concession of the four major airports across the country would lead to exponential increase in revenue of the aerodrome, stressing that the Lagos airport after concession would generate more than N30 billion annually from non-aeronautical sources.

The minister explained that the government had limited resources for airport infrastructure when there are other pressing areas that need government’s attention; hence the need to involve the private sector and investors to develop the facilities.

The four airports slated for concession are the Murtala Muhammed Airport, Lagos, the Nnamdi Azikiwe International Airport, Abuja, the Mallam Aminu Kano International Airport (MAKIA), Kano and the Port-Harcourt International Airport.

Buttressing his claims with statistics, Ojikutu explained that just before the concession of the international airport, FAAN recorded passenger traffic figures for the five international airports of Lagos, Abuja, Port-Harcourt, Kano and Enugu, out of the 22 federal airports the expected revenue for 2015 to 2019 from just two out of about 16 revenue generation sources. According to him, in 2015,

Passenger Service Charge (PSC) on 2,176,895 passengers (international) and 4,380,362 passengers (domestic) amounted to N43.580 billion while landing and parking fees for 22,464 flights (international) and 82,300 flights (domestic) grossed N38.280 billion, bringing the total to N83.580 billion.

For 2016 PSC earnings, Ojikutu disclosed that the sector raked in N42.370 billion for 2,113, 358 international passengers and 4,329,792 domestic passengers, bringing the total revenue to N42.370 billion while money realised from landing and parking on 21,469 on international flights and 65,162 flights (domestic) amounted to N35.607 billion, bringing the total revenue for the year to N77.977 billion.

In 2017, PSC on 1,984,888 passengers (international) and 3,959,736 passengers (domestic) was N39.690 billion while landing and parking on 19,720 flights (international) and 66,279flights (domestic) was N33.168 billion. Total revenue was said to be N72.859.

The 2018 PSC record, according to Ojikutu, on 2,219,797 passengers (international) 4,965,905 passengers (domestic) stood at N44.899 billion while landing and parking of 27,696 flights (international) 76,367 flights (domestic) was N45.380 billion with total for the year rising to N90.280 billion.

Ojikutu further disclosed that in 2019, PSC on 2,319,689 passengers (international) 5,335,160 (domestic) passengers amounted to N47.088 billion while landing and parking 21,573 (international) flights and 81,179 (domestic) flights was N36.910 billion with N83.998 billion as total.

He reiterated that landing and parking fees for international flights had been $4,000 at Nigerian airports since 2007 when exchange rate was N180/$ while Heathrow was N968 for landing and parking.

Landing with passenger with baggage and cargo sanctions, he said, put more stress on the runway than when taking off, while advising that incoming passenger should pay PSC as the outbound because they enjoy same airport services and comfort as the outbound passenger.

Wole Shadare