FAAN remits N2b to Federation’s account, pleads for bailout to address facility decay

• Agency operates at 30% capacity, rakes N30b as at Sept
• Recovers N5b debts
• Reps:Put 70% of revenue into infrastructure

The Federal Airports Authority of Nigeria (FAAN) said it remitted N2b to the Consolidated Revenue Fund (CRF) accounts between January and September 2020.

This is coming as the Managing Director of the agency, Capt. Hamisu Yadudu pleaded for urgent intervention fund from the Federal Government to address infrastructural gaps.

He stated that the addressing the infrastructural gaps would help to position the industry for better service delivery and contribution to the nation’s economy.

He made the appeal when the House of Representatives Committee on Aviation led by its chairman, Nnolim Nnaji inspected some of the facilities of the agency which included work on the resurfacing of the taxi-way and the new terminal building at the Murtala Muhammed International Airport, Lagos expected to be commissioned February 2021.

He further explained that the monies derived from the various revenue sources annually are spent on personnel, overhead and capital cost while FAAN is expected to make remittances to the Federation Account.

Explaining the sharp reduction of the agency’s revenue, Yadudu stated that 2020 started out on a very promising note with very high revenue trajectory, stressing that barely three months into the year, Nigeria as well as the world witnessed one of its worse natural misfortune in recent times.

“The COVID-19 came and has dealt a devastating blow to every facet of life with the aviation industry at the centre of the economic fallout. In the year 2020, the authority presented to the committee members the Internally Generated Revenue (IGR) and was graciously approved for implementation”.

“The approved revised revenue estimate for 2020 totaled N92, 740, 174,772 (less 10% deduction to NIMET and service charge) made up N51, 984, 585, 806 from the aeronautical source, N20,699,984,381 from the non-aeronautical source and N21, 806,835,846 from debt recovery”.

He disclosed that as September 2020, FAAN generated N30, 084, 235, 670 which according to him is 43.25% of N69, 555, 131, 079, adding that, “the nine months target set out of which N27, 977, 455, 341 was actual collection. From this amount, N17, 610, 732, 478 was from the aeronautical source revenue , N5, 776, 622, 874 was from the non-aeronautical source with N5, 242, N434, 128 recovered from the outstanding debts owed”.

From January to September 2020, the revenue target on aeronautical source according to the FAAN boss was N38, 988, 439, 354 with actual generation totaling N17, 823,332,992 out of which N17, 610, 732, 478 was actual collection giving a per centage performance of 98.81% on revenue collected over generated.

The authority he noted is shifting focus from the aeronautical sources of revenue to the non-aeronautical most especially in the light of the COVID-19 pandemic which he said has significantly affected both passengers and aircraft traffic.

His words, “FAAN is presently operating at only about 30% of its pre-COVID-19 capacity. While some countries are yet to lift travel bans, others are already entering into the second wave of the pandemic, thereby imposing new levels of restrictions”.

Nnaji urged the Federal Airports Authority of Nigeria (FAAN) to focus 70% of its investment on provision of critical aeronautical infrastructure for the aviation industry in order to improve security and safety of the airports.

The lawmakers also asked the agency to begin preparation for the future by saving for the rainy days so as to avoid a situation like that of the Covid-19 pandemic whereby the agency had challenges with funding and meeting other necessary needs.

The House Committee on Aviation chairman promised that the National Assembly would help to protect the interest of industry in the parliament.

He added that the provisions of the new aviation industry bill before the house will when passed be friendly to both staff of the agency, the industry and the airline operators affirming that without the airlines, there will be no FAAN and verse versa.

He said “l believe that whatever investment FAAN will do, they should put 70% of the investment in providing infrastructure. That is the path we should tow now.  You have to  find how to put up a strategy on how to focus on safety and security of the airports. The airport terminals can be containerized. What is important for airlines operators is to land in a safe airport with good security, good runways, airfields lightening, operational and perimeter fence that guarantees the safety and insurance of their aircraft.”

Wole Shadare