Lagos, Abuja top revenue generation for FAAN as Kano, P/H record 4%, others 13%

  • N576 billion ($1.2b) lost to medical tourism yearly by Nigeria

 

 

The Federal Airports Authority of Nigeria (FAAN) disclosed that the Murtala Muhammed Airport, Lagos recorded 58 per cent of the total revenue generated by 22 airports across the country.

Coming a distant second was the Nnamdi Azikiwe International Airport, Abuja with 21%; Port-Harcourt International Airport, Port-Harcourt 4%, Mallam Aminu Kano International Airport (MAKIA) Kano 4% while other airports together recorded 13%.

The FAAN was however silent on the total revenue generated in 2020 from aeronautical and non-aeronautical sources, particularly at a period COVID-19 seriously depleted its revenue and caused the authority untold hardship leading to paucity of funds to carry out major projects.

 

FAAN

This is coming as the authority said the completion of the new international airport terminals would help to increase the country’s traffic by additional 15 million passengers from about 15 million recorded both for local and international passengers’ pre-COVID-19 period.

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Director, Commercial and Business Development, FAAN, Mr. Sadiku Rafindadi said FAAN was committed in putting strategies in place to increase its revenue base through its aeronautical and non-aeronautical sources.

Delivering a paper with theme: Improving Airport Non-Aeronautical Revenue Stream” at the opening of the Business Summit on Cargo and Aero logistics and Drone Expo in Lagos, Rafindadi said, many successful airports in the world depend more on non-aeronautical revenue sources arising from modern facilities and the provision of services that draw both passengers and non-passengers to the airports.

He said, “The terminals provides more space to cater to passenger preference, exciting retail facilities, Duty free shops, food and beverage outlets, advertising, car parking among others. The new terminals shall open up potentials for tourism, businesses and effective use of Bilateral Air Service Agreement, BASA within partnering countries”.

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He said, “Nigerian airports have enormous potential for high gross earnings if well harnessed. Each airport has their peculiarity in terms of tourism, agriculture, mining and aerotropolis to better improve their viability”.

To shore up its revenue generation, he said FAAN was at looking at increasing the share of non-aeronautical activities from below 30% to 40%, adding that this would be done, ” by focusing on investments in airport infrastructures and technology solutions to drive cost optimization, creating enabling environment and improving none aeronautical revenue streams”.

The FAAN Business Director also disclosed that, because about N576 billion ($1.2b) is lost to medical tourism yearly by Nigeria, in addition to its airport clinics being commercialized, FAAN is designating some land area at the airport to harness non- aeronautical opportunity.

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“Nigerian airports have the ability to grow their non-aeronautical revenue considering the geographical location of the country as a hub, the available land, climate, competition, and consumer demand (population)”.

He added, “with the vast land available at our airports for business, FAAN is open to Foreign Direct Investment (FDI) and partnership with corporate organizations on different Public Private Partnership (PPP) business models through Build Operate and Transfer (BOT), Joint Ventures (JV’s) and concessions to explore opportunities for improved none aeronautical revenue streams’.

Wole Shadare