Ojikutu seeks probe of under-declared aviation revenue

  • Says yearly figure inaccurate, misleading

 

Aviation Security Consultant and Secretary General of the Aviation Safety Round Table Initiative (ASRTI),Grp. Captain John Ojikutu (Rtd) has lamented what he termed yearly under-declared inaccurate Internally Generated Revenue (IGR) in the aviation industry.

In a data made available to Aviation Metric, 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.

 

EARNINGS ON PASSENGER SERVICE CHARGE 2015 (Departure Only)

 

International PSC@$50 NAIRA

RATE@₦360/$

Domestic PSC @ ₦1,000 TOTAL
Lagos 1,523,801 $76,190,050 ₦27,428,418,000 1,890,824 ₦1,890,824,000 ₦29,319,242,000
Abuja 491,631 $24,581,550 ₦ 8,849,358,000 1,683,027 ₦1,683,027,000 ₦10,532,385,000
Port Harcourt 54,124 $2,706,200 ₦974,232,000 555,876 ₦555,876,000 ₦ 1,530,108,000
Kano 88,102 $4,405,100 ₦1,585,836,000 113,350 ₦113,350,000 ₦ 1,699,186,000
Enugu 19,237 $     961,850 ₦     346,266,000 137,285 ₦137,285,000 ₦483,551,000
Total 2,176,895 $108,889,750 ₦39,200,370,000 4,380,362 ₦4,380,362,000 ₦43,580,732,000

 Source: Grp. Captain John Ojikutu (Rtd)

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

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.

 

EARNINGS ON PASSENGER SERVICE CHARGE 2017 (Departure Only)

 

International PSC@$50 NAIRA

RATE@₦360/$

Domestic PSC @ ₦1,000 TOTAL
Lagos 1,457,664 $72,883,200 ₦26,237,952,000 1,848,547 ₦1,848,547,000 ₦28,086,499,000
Abuja 369,360 $18,468,000 ₦ 6, 648,480,000 1,416,891 ₦1,416,891,000 ₦ 8,065,371,000
Port Harcourt 41,511 $ 2,075,550 ₦        747,198,000 431,071 ₦431,071,000 ₦ 1,178,269,000
Kano 94,696 $ 4,743,800 ₦ 1,707,768,000 124,302 ₦124,302,000 ₦ 1,832.070,000
Enugu 21,657 $ 1,082,850 ₦389,826,000 138,925 ₦138,925,000 ₦     528,751,000
Total 1,984,888 $99,253,400 ₦35,731,224,000 3,959,736 ₦3,959,736,000 ₦39,690,960,000

Source: Grp. Captain John Ojikutu (Rtd)

The Minister at a webinar on Tuesday explained that the government had limited resources for airports 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.

Buttressing his claims with statistics, Ojikutu explained that Just before the concession of the international airport, the 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 amounted to the following.

 

EARNINGS ON PASSENGER SERVICE CHARGE 2016 (Departure Only)

 

International PSC@$50 NAIRA

RATE@₦360/$

Domestic PSC @ ₦1,000 TOTAL
Lagos 1,501,695 $ 75,084,750 ₦27,030,510,000 1,882,006 ₦1,882,006,000 ₦28,912,516,000
Abuja 444,481 $ 22,224,050 ₦  8,000,658,000 1,667,806 ₦1,667,806,000 ₦ 9,668,464,000
Port Harcourt 45,095 $2,254,750 ₦ 811,710,000 483,410 ₦483,410,000 ₦ 1,295,120,000
Kano 101,803 $5,090,150 ₦  1,832,454,000 126,647 ₦126,647,000 ₦ 1,959,101,000
Enugu 20,284 $1,014,200 ₦365,112,000 169,923 ₦169,923,000 ₦     535,035,000

 

 

Total 2,113,358 $105,667,900 ₦38,040,444,000 4,329,792 ₦4,329,792,000 ₦42,370,236,000

Source: Grp. Capt. John Ojikutu (Rtd)

According to him, in 2015, Passenger Service Charge (PSC) on 2,176,895 passengers (international) and 4,380,362 passengers (Domestic) amounted to  ₦43,580,732,000billion while landing and parking fees for  22,464flights (international) and 82,300flights (Domestic) grossed ₦38,280,960,000 billion, bring the total  to N83,580,732,000billio.

For 2016 PSC earnings, Ojikutu disclosed that the sector raked in N42, 370, 236, 000 for 2, 113, 358 international passengers and 4,329,792 domestic passengers bringing the total revenue to ₦42,370,236,000 while money realized from landing and parking on 21,469 on international flights and 65,162 flights (Domestic) amounted to ₦35,607,024,000 billion, bring the total revenue for the year to  N77,977,260,000.

 

EARNINGS ON PASSENGER SERVICE CHARGE 2018 (Departure Only)

 

International PSC@$50 NAIRA

RATE@₦360/$

Domestic PSC @ ₦1,000 TOTAL
Lagos 1,549,835 $77,491,750 ₦27,897,030,000 2,107,001 ₦  2,107,001,000 ₦30,004,031,000
Abuja 515,015 $25,750,750 ₦ 9,270,270,000 1,951,788 ₦1,951,788,000 ₦11,222,058,000
Port Harcourt 44,305 $2,152,250 ₦     774,810,000 534,910 ₦534,910,000 ₦ 1,309,720,000
Kano 86,461 $4,323,050 ₦ 1,556,298,000 201,615 ₦201,615,000 ₦ 1,757,913,000
Enugu 24,181 $1,209,050 ₦     435,258,000 170,591 ₦170,591,000 ₦        605,849,000

 

 

Total 2,219,797 $110,989,850 ₦39,933,666,000 4,965,905 ₦4,965,905,000 ₦44,899,571,000

Source: Grp. Captain John Ojikutu (Rtd)

In 2017, PSC on 1,984,888 passengers (international) and 3,959,736 passengers (Domestic) was ₦39,690,960,000 billion while  landing and parking on 19,720 flights (international) and66,279flights (Domestic) was ₦33,168,888,000 billion. Total revenue was said to be ₦72,859,960,000.

The 2018 PSC record according to Ojikutu on 2,219,797 passengers (international) 4,965,905 passengers (Domestic) stood at ₦44,899,571,000 billion while  landing and parking of 27,696 flights(international) 76,367 flights (Domestic) was  ₦45,380,664,000billion with total for the year rising to N90,280,235,000 billion.

 

EARNINGS ON PASSENGER SERVICE CHARGE 2019 (Departure Only)

 

International PSC@$50 NAIRA

RATE@₦360/$

Domestic PSC @ ₦1,000 TOTAL
Lagos 1,624,385 $81,219,250 ₦29,238,930,000 2,142,291 ₦2,142,291,000 ₦31,381,221,000
Abuja 531,876 $26,593,800 ₦9,573,768,000 2,194,391 ₦2,194,391,000 ₦11,768,159,000
Port Harcourt 49,393 $  2,469,650 ₦889,074,000 625,599 ₦    625,599,000 ₦  1,514,673,000
Kano 94,239 $  4,711,950 ₦1,696,302,000 277,963 ₦    277,963,000 ₦  1,974,265,000
Enugu 19,716 $      985,800 ₦354,888,000  

94,862

₦ 94,862,000 ₦        449,750,000
Total 2,319,609 $115,980,450 ₦41,752,962,000 5,335,106 ₦5,335,106,000 ₦47,088,068,000

 

 

 

 

 

Enclosure: 2

 

 

 

EARNINGS ON AIRCRAFT LANDING AND PARKING 2015 (Arrival Only)

 

International Landing& Parking@$4,000 NAIRA

RATE@₦360/$

Domestic Landing& Parking@$200 NAIRA

RATE@₦360/$

TOTAL
Lagos 15,145 $60,580,000 ₦21,808,800,000 35,449 $7,089,800 ₦2,552,328,000 ₦24,361,128,000
Abuja 4,748 $18.992,000 ₦6,837,120,000 30,881 $6,176,200 ₦2,223,432,000 ₦  9,060,552,000
Port Harcourt 1,152 $ 4,608,000 ₦1,658,880,000 10,992 $2,198,400 ₦791,424,000 ₦  2,450,304,000
Kano 1,251 $  5,004,000 ₦1,801,440,000 2,436 $  487,200 ₦175,392,000 ₦  1,976,832,000
Enugu 173 $       692,000 ₦    249,120,000 2,542 $  508,400 ₦183,024,000 ₦        432,144,000
Total 22,469 $89,876,000 ₦32,355,360,000 82,300 $16,460,000 ₦5,925,600,000 ₦38,280,960,000

 

 

 

 

EARNINGS ON AIRCRAFT LANDING AND PARKING 2016 (Arrival Only)

 

International Landing& Parking@$4,000 NAIRA

RATE@₦360/$

Domestic Landing& Parking@$200 NAIRA

RATE@₦360/$

TOTAL
Lagos 14,638 58,552,000 ₦21,078,720,000 30,642 $6,128,400 ₦2,206,224,000 ₦23,284,944,000
Abuja 4,600 18,400,000 ₦6,624,000,000 20,802 $4,160,400 ₦1,497,744,000 ₦  8,121,744,000
Port Harcourt 975 3,900,000 ₦ 1,404,000,000 8,794 $1,758,800 ₦633,168,000 ₦  2,037,168,000
Kano 1,068 4,272,000 ₦ 1,537,920,000 2,313 $  462,600 ₦  166,536,000 ₦  1,704,456,000

 

 

Enugu 188 752,000 ₦     270,720,000 2,611 $  522,200 ₦  187,992,000 ₦      458,712,000
Total 21,469 85,876,000 ₦30,915,360,000 65,162 $13,032,400 ₦4,691,664,000 ₦35,607,024,000

 

 

EARNINGS ON AIRCRAFT LANDING AND PARKING 2017 (Arrival Only)

 

International Landing& Parking@$4,000 NAIRA

RATE@₦360/$

Domestic Landing& Parking@$200 NAIRA

RATE@₦360/$

TOTAL
Lagos 13,990 $55,960,000 ₦20,145,600,000 31,385 $6,277,000 ₦2,259,720,000 ₦22,405,320,000
Abuja 3,837 $15,348,000 ₦  5,525,280,000 22,149 $4,429,800 ₦1,594,728,000 ₦  7,120,008,000
Port Harcourt 791 $ 3,164,000 ₦  1,139,040,000 8,287 $1,657,400 ₦  596,664,000 ₦  1,735,704,000
Kano 938 $ 3,752,000 ₦  1,350,720,000 2,165 $  433,000 ₦  155,880,000 ₦  1,506,600,000
Enugu 164 $     656,000 ₦        236,160,000 2,293 $  458,600 ₦  165,096,000 ₦        401,256,000
Total 19,720 $78,880,000 ₦28,396,800,000 66,279 $13,255,800 ₦4,772,088,000 ₦33,168,888,000

 

 

 

 

EARNINGS ON AIRCRAFT LANDING AND PARKING 2018 (Arrival Only)

 

International Landing& Parking@$4,000 NAIRA

RATE@₦360/$

Domestic Landing& Parking@$200 NAIRA

RATE@₦360/$

TOTAL
Lagos 20,630 82,520,000 ₦29,707,200,000 32,373 $6,474,600 ₦2,330,856,000 ₦32,038,056,000
Abuja 4,959 19,836,000 ₦  7,140,960,000 30,253 $6,050,600 ₦2,178,216,000 ₦9,319,176,000
Port Harcourt 868 3,472,000 ₦  1,249,920,000 7,750 $1,550,000 ₦  558,000,000 ₦1,807,920,000
Kano 1,062 4,248,000 ₦  1,529,280,000 3,480 $  696,000 ₦  250,560,000 ₦  1,779,840,000
Enugu 177 708,000 ₦         254,880,000 2,511 $  502,200 ₦  180,792,000 ₦        435,672,000
Total 27,696 110,784,000 ₦39,882,240,000 76,367 $15,273,400 ₦5,498,424,000 ₦45,380,664,000

 

 

 

 

 

 

 

 

 

EARNINGS ON AIRCRAFT LANDING AND PARKING 2019 (Arrival Only)

 

International Landing& Parking@$4,000 NAIRA

RATE@₦360/$

Domestic Landing& Parking@$200 NAIRA

RATE@₦360/$

TOTAL
Lagos 15,104 60,416,000 ₦21,749,760,000 34,301 $6,860,200 ₦2,469,672,000 ₦24,219,432,000
Abuja 4,636 18,544,000 ₦ 6,675,840,000 32,494 $6,498,800 ₦2,339,568,000 ₦9,015,408,000
Port Harcourt 775 3,100,000 ₦ 1,116,000,000 9,450 $1,890,000 ₦680,400,000 ₦1,796,400,000
Kano 950 3,800,000 ₦ 1,368,000,000 3,593 $718,600 ₦258,696,000 ₦1,626,696,000
Enugu 108 432,000 ₦     155,520,000 1,341 $268,200 ₦96,552,000 ₦        252,072,000
Total 21,573 86,292,000 ₦31,065,120,000 81,179 $16,235,800 ₦5,844,888,000 ₦36,910,008,000

 

 

 

 

 

 

 

 

 

Enclosure: 3

 

PROJECTED EARNINGS FOR MMA TERMINALS ALONE (LAGOS AIRPORT)

 

$
1 PSC  International  ($100)  x  1,624,385  passengers (international)  

162,438,500

2 Landing    and   Parking      15,104    flights    x   $5,000 (international)  

75,520,000

3 PSC Domestic ($10) x 2,142,291 passengers 21,422,910
4 Landing     and     Parking     34,301flights      x     $500 (Domestic) 17,150,500
5 CSC 200 million kg @ $0.10 per kg 20 million
6 Tollgate Gate x2 5,000 cars per hour x 15 hours x

$0.50

13.7 million
7 Avo Bridge Rate $50 per hour for 6 hours for 15,104 flights per day per year  

4,531,200

8 Car Parks 1,000 $0.05 x 15 hours x 365 days 2.735 million
9 Office Shop Rent
10 Land Rent
11 Car Hires Concession
12 Advert
13 ODC 1,000 x $50 50,000
14 Checkin-Counter – $45 per for 6 hours for 15,104

 

 

flight 4,078,0000
15 Charge   on   Fuel   Sales   5   million    litre   per   day

$0.01×365 days

 

18.250 million

TOTAL $339,876,000 ₦135.95 Billion

@₦400/$

Source: Grp. Capt. John Ojikutu (Rtd)

Ojikutu further disclosed that in 2019,  PSC on 2,319,689 passengers (international) 5,335,160 (Domestic) passengers amounted to  ₦47,088,068,000 while  landing and Parking 21,573 (international) flights and 81,179 (Domestic)flights was ₦36,910,008,000 billion with N83,998,076,000 billion as total.

Wole Shadare
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