FAAN: Only Three of Nigeria’s Twenty-Two Airports Are Financially Viable

According to the Federal Airports Authority of Nigeria (FAAN), only three of the twenty-two airports in Nigeria are profitable.

FAAN Executive Director Olubunmi Kuku on a broadcast on Tuesday said several states in the North and Southwest are building new airports. She said the authority is also cross-subsidising 19 other airports and will continue to subsidise some airports under construction. “I said at the outset that we have 22 airports which we own and manage,” Kuku said.

“In addition, we have six or seven airports owned by state governments or private individuals and companies that also support aviation security services and fire and rescue services.
“We have upcoming new airports in several states in the North and Southwest.

“Based on today’s statistics, I would say that out of the 22 airports, only three are truly profitable and contribute significantly to the livelihood of the airport companies that we operate.

“Today, we are actually cross-subsidizing the other 19 airports and in most cases we will be substituting or cross-subsidizing some of the new airports.

“Kuku said FAAN contributes 50 percent of its revenue to the federal coffers which is a major challenge, adding that this is a big challenge and the agency is in talks with various government departments for some relief.

The FAAN boss said passenger traffic would be driven by gross domestic product (GDP) growth and economic activity, not the construction of new airports. Kuku also said to increase airport traffic, it was important to focus on key activities such as trade, manufacturing and tourism. “Rather than building new airports, we need to look at the lower end of the value chain to determine what activities can drive traffic to these airports,” Kuku said.

She said FAAN is working closely with international organisations including the International Air Transport Association (IATA) and the Federal Ministry of Aviation to expand both domestic and international routes.

Kuku said there are efforts to turn some airports in Nigeria and across the country into transit hubs. “What this means is that we are beginning to build an airport network where we can move feeder flights to other states and other places to start using the airports,” she said.

The FAAN representative noted that close to four million passengers currently travel internationally from Nigeria, stressing that efficient utilisation of infrastructure is vital to the preservation and maintenance of facilities.