Olubunmi Kuku, Managing Director of the Federal Airports Authority of Nigeria (FAAN), revealed significant insights into the economic viability of Nigeria’s airports.
Kuku’s remarks shed light on the financial struggles faced by the majority of airports managed by FAAN, highlighting a stark contrast between profitable and subsidized facilities.
Out of the 22 airports under FAAN’s management, Kuku disclosed that only three are currently profitable.
These airports, which include major hubs like Nnamdi Azikiwe International Airport, Murtala Muhammed Airport, Kano, and Port Harcourt, play a crucial role in sustaining the aviation sector.
The remaining 19 airports, however, operate at a loss, requiring substantial subsidies to cover operational costs that exceed generated revenues.
The disparity in profitability underscores broader challenges within Nigeria’s aviation infrastructure, where critical maintenance and upgrades are urgently needed across terminal, landside, and airside facilities.
Despite efforts by various state governments to construct new airports with the aim of fostering economic growth and attracting trade, Kuku stressed that passenger traffic and economic activities remain pivotal factors influencing airport viability.
“We are cross-subsidizing the other 19 airports today,” Kuku stated, acknowledging FAAN’s ongoing financial support to sustain these facilities.
She further expressed concerns over the allocation of 50% of FAAN’s revenue to the federal government, a significant hurdle impacting operational flexibility and growth initiatives.
Kuku’s remarks align with recent findings by The Punch, indicating that only four out of over 30 airports in Nigeria significantly contribute to the nation’s foreign trade, amounting to N5.57 trillion in a span of 51 months.
This discrepancy highlights the economic importance of strategically positioned airports in facilitating trade and economic activities.
Looking ahead, FAAN plans to navigate these challenges by exploring cross-subsidy models for upcoming airports under development, emphasizing the need for sustainable business practices amidst evolving economic landscapes.
Kuku emphasized the critical role of sectors such as trade, manufacturing, and tourism in driving airport traffic, advocating for prioritized investments that align with GDP growth and economic development goals.
As discussions continue between FAAN and governmental branches to explore potential relief measures and operational improvements, the spotlight remains on fostering a sustainable aviation sector that supports Nigeria’s broader economic ambitions.
The revelations by the FAAN Managing Director underscore a pressing need for strategic investments and policy interventions aimed at enhancing airport profitability and operational efficiency across Nigeria’s aviation landscape.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members
