February 13, (THEWILL) – The Federal Airports Authority of Nigeria (FAAN), has proposed a Revenue Budget of N188 billion for the year 2022.
Managing Director/Chief Executive of FAAN, Capt. Rabiu Yadudu, who disclosed the plan at the weekend, said the proposal was made as against N125.4 Billion approved for the year 2021, which translates to an increase of 50.4%.
According to Capt Yadudu, the projection was arrived at with the hope that the effect of the pandemic would have been over, thereby leading to an increase in passenger traffic, as well as boost in the non-aeronautical revenue base of the Authority as already highlighted in the 2021 budget performance.
Speaking during his opening remarks at the Joint oversight visit of the Senate and House of Representatives on aviation Saturday, Capt Yadudu equally explained that, even though FAAN does not have operating surplus, the Authority had to remit N16.7 Billion to the Federation Account as contribution to the Consolidated Revenue Fund as at the end of December 2021, for the year 2021 alone, in spite of the effect of the pandemic during this period.
The FAAN boss, also informed that the Authority has shifted its focus from the aeronautical sources of revenue to the non-aeronautical, so as to further improve the revenue performance.
According to him, aggressive sensitisation is going on with respect to areas at the airports, where investors can come in, adding that “specific areas where effort is being focused on include advertisement, car parks, private airport terminal operators and Bi-Courtney (BOT) revenue sources.”
On the area of advertisement he said, “the Authority is taking steps to terminate the non-performing concession agreements and engage new concessionaires. We hope to make significant progress before the end of the 2nd quarter. Car parks automation at the various airports is presently going on, before the end of the year we should have achieved a great result.”
Warning that stiff sanctions are going to be applied for non-payment for various services rendered by FAAN to private airport terminals, Yadudu lamented that the Authority is still faced with some challenges on debt recovery, most especially on debts owed by Arik Air, which constitutes a significant portion of the Authority’s debt portfolio.
“We commend the effort of the Committees on Aviation with respect to intervention so far in the recovery of ARIK debts, inherited by the Asset Management Corporation of Nigeria (AMCON). However, we need further assistance to bring the issue to a logical conclusion as the huge debts are still outstanding”, he said.
Yadudu assured that steps are being taken to combat the COVID-19 pandemic. He, however, noted that recovery to pre-COVID status may take between 3-4 years, meaning, the effect of the pandemic would likely linger until sometime in 2024.
“At the moment, the Passenger Traffic is still about 56% of Pre-COVID traffic. Nonetheless, the year 2021 was a better year when compared with 2020”, he said.
Commending the efforts of the Committees in considering the repealing of the existing Aviation Agencies Act and enacting new ones, including that of FAAN, the Chief Executive described the step as a major milestone in the history of this administration
In the last 3 years, in-spite of the effect of the pandemic, Yadudu informed that FAAN through its Internally Generated Revenue Budget has been able to: design, build and maintain interior spaces and assets at MMA Lagos, Abuja and Portharcourt terminals; construction of airline office block at Portharcourt; rehabilitation of Fire and Rescue building at Portharcourt; construction of Aviation Medical Clinic at Enugu International Airport amongst others.
In-spite of the achievements, the MD pointed out that FAAN is still challenged with infrastructural deficit in the industry; capacity and contribution of airport to revenue generation; human capital development; economic challenges amongst others.
He therefore advised that Aviation Agencies urgently need intervention funds from the Federal Government to address infrastructural gaps and position the industry for better service delivery and contribution to the National economy.
In his response, the Chairman, Senate Committee on Aviation, Senator Smart Adeyemi, commended FAAN for all the agency has been able to achieve despite the challenges posed by Covid-19.
Senator Adeyemi added that FAAN should work more in the area of improving airport security using technology and also ensure that her human resources are well motivated.
Also, the Chairman, House of Representatives Committee, Honourable Nnolim Nnaji, on his part, advised that the new international terminal in Lagos should be reopened as soon as possible, since it is the most patronised gateway in the nation.
Noting that the Committee is also interested in the welfare and well being of workers, he noted that aviation is key to the socio-economic development of Nigeria, and as such, they will assist in whatever capacity possible to ensure that the industry is both robust and effective.
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