Minister Allays Fears As Airport Concession Gathers Momentum

  • Sirika lists options for FAAN workers

As the concession of four major airports in Lagos, Abuja, Port-Harcourt and Kano gathers momentum, the Minister of Aviation, Hadi Sirika, said workers would have the option to return to the Federal Airports Authority of Nigeria (FAAN) after a period of 18 to 24 months.

The minister also said workers not required by a concessionaire shall be allowed to return to FAAN after the 18 to 24 month period, debunking claims that concession of the four terminals would make them lose their jobs.

Sirika disclosed in a 21- page presentation, tagged: “Nigerian Airport Terminal Concession Strategy,” to the House of Representatives made available to Woleshadarenews dated November 10, 2020. Benefits of transferred staff, he reiterated, shall be paid by FAAN on completion of the 18 months to 24 months if the staff decides to stay with a concessionaire.

The Nigerian airport concessions, according to him, would be a terminal concession (passenger & cargo), stressing that the majority of its revenue would be derived from non-aeronautical sources. His words: “All other facilities at the airports will still be managed by FAAN. Our airports are national security assets. This must be kept so.

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“The concessionaire(s) will provide the investment required to upgrade the existing terminals, take over the new terminals and maintain them over a period of time to be determined based on financial assessment of each transaction.

“Passenger Service Charge and Security Charge will be shared by FAAN and the concessionaire(s) and FAAN’s share of the charges shall be paid directly to FAAN by the International Air Transport Association (IATA).”

To underscore the transparency of the exercise, Sirika stated that the concessionaire(s) would be made to sign service level agreements with FAAN and the Nigerian Airspace Management Agency (NAMA) to ensure that airport operates efficiently, the service level agreement will cover the runway, taxiway, security and Air Traffic Management (ATM).

FAAN is required to provide manpower through Aviation Security (AVSEC) for security of both the airside and landside, just as the concessionaire(s) will provide and maintain landside equipment whilst FAAN continues to provide and maintain Airside security equipment.

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The minister listed Algeria, Congo, Guinea, Tunisia, Gabon, Senegal, Rwanda among nations that have adopted the same model of airport concession that Nigeria is planning to adopt.

He disclosed that on assumption of duties in November 2015, they were faced with so many challenges ranging from recession, falling oil price, inadequate safety, security and surveillance equipment.

 

Murtala Muhammed International Airport, Lagos

Others were dilapidated infrastructure and obsolete equipment, external debt of $1 billion for Chinese terminal buildings, large number of unemployed trained professional Nigerian aviators, high debt profile of domestic airlines operators, local Debt burden- AMCON, Bi- Courtney, Sanderton Ventures Ltd, among many other crises.

He explained that stakeholder conferences were conducted to present a road-map, in which concession was one of the items, stressing that the various stakeholders accepted the road map but expressed some legitimate concerns.

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There is a consensus that the airport concession would sail through despite many obstacles put on the way by aviation workers’ unions because of perceived lack of transparency usually associated with such exercise.

The House of Representatives Committee on Aviation led by Nnolim Nnaji has set up sub-committee to interface with the Ministry of Aviation, the financial adviser, and the project delivery team on the proposed airports concession by the Federal Government.

The sub-committee is to review the reports of the financial adviser and the project delivery team, which, according to the chairman, fell below expectations.

Nnaji, in his opening remarks, emphasised that the intervention of the committee was not intended to oppose the policy of the executive but to make sure that Nigeria and Nigerians are not shortchanged.

 

Wole Shadare