The need to modernize Nigeria’s international airports has been reiterated. Minister of Aviation, Sen. Hadi Sirika at a virtual meeting with aviation stakeholders lamented the current suboptimal environment of the airports adding that they are urgently in need of infrastructure investments and modernisation to meet international standards.
The Minister who spoke on the Nigerian Airport Concession Strategy noted that with the population growth and its increasing affluence, a private operator of the four main airports in the country will be able to operate the airports with an international standard and expand the facilities in accordance with traffic demand at each airport.
According to him, Airport Public Private Partnership (PPP) projects require the authority setting minimum service levels for the Concessionaire to comply with, adding that this will provide the Authority with a tool to set service standards for the operation of the terminals and secure a reliable high-level products.
Sirika also gave a breakdown of the Airport Concession Strategy.
“The Nigerian Airport Concessions will be a Terminal Concession and majority of its revenue will be derived from Non Aeronautical sources; All other facilities at the airports and existing concessions outside the Airport Terminals will still be managed by FAAN.
“The Concessionaire 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; and Passenger Service Charge and Security Charge will be shared by FAAN and the Concessionaire and FAAN’s share of the charges shall be paid directly to FAAN by IATA”.
The minister said that the concessionaire will sign service level agreements with FAAN and NAMA to ensure that the airport operates efficiently.According to him, the service level agreement will cover the Runway, Taxiway, Security and Air Traffic Management.
He explained further that the Federal Airports Authority of Nigeria (FAAN), will be required to provide manpower through Aviation Security (AVSEC) for security of both the Airside and Landside, noting however, that the concessionaire will provide and maintain landside equipment while FAAN will continue to provide and maintain Airside security equipment.
“All existing concessions within the Terminal concession will be inherited by the concessionaire and will be allowed to run its course before any review.
“Tariffs will be regulated in accordance with the procedures set in the concession agreement”, he explained.
Sirika who emphasized that the concessioning will not lead to job loss, added that “there are too many jobs to be done and we need more hands, so, there won’t be job loss”.
He assured stakeholders that the Ministry is committed to a transparent and law abiding in concessioning process, which is being done in the interest of the people.
Speaking at the meeting, the Acting Director General, Infrastructure Concession Regulatory Commission (ICRC) Mr. Michael Ohiani, who commended the minister for his effort to comply with the ICRC act said the ICRC has availed the Ministry of all it needs for full compliance and international best practices in the concessioning process, adding that they will ensure the project is delivered transparently.
On his part, the Managing Director, Federal Airport Authority of Nigeria (FAAN), Capt. Rabiu Yadudu, said a lot has been done to allay fears in the last eight [8] months.
He noted that the policies of the government are people-friendly, and called for more interaction and participation, to ensure an enhanced and sustainable process.
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