FAAN grows revenue to 343bn

Despite infrastructural deficit across Nigerian airports, the Federal Airports Authority of Nigeria has improved its revenue generation by over 100 per cent, raking in N343,870,721,789.31 between January and November 2024, against its N155,487,786,012.29 realised in the year before.

Sources close to the authority in the aviation industry told our correspondent that the bulk of the revenue came from Lagos, Abuja, and Port Harcourt airports.

As soon as assuming office, the current FAAN MD, Mrs. Olubunmi Kuku, swung into action to block revenue leakages and cut so much waste that had dogged the agency for several years.

Meanwhile, in January 2025, Kuku  said she would require N580bn for the rehabilitation of airport runways across the country, most of which she claimed to outlived their lifespan.

She added that aside from the runways, other airports’ infrastructures, such as terminals, also needed major rehabilitation, which has been affecting operational efficiency and safety.

A document obtained by The PUNCH showed that one of the first achievements of the current administration at FAAN was an adequate review and re-pricing of aeronautic and non-aeronautic tariffs at the airports to reflect economic realities, optimisation of revenue generation, re-evaluation of concessions, review and recalibration of the pricing structure based on current market realities, and exploration of options for flexible pricing arrangements that would consider the agency’s operational costs.

Others are the completion and test running of the multi-level car park at the Nnamdi Azikiwe International Airport, Abuja, for use; the review of the work process for seamless processing and the eradication of bottlenecks in the work process for improved turnaround time/fast track/one-stop shop; and the commissioning of prepaid meters to all concessionaires, government agencies, and armed forces to block leakages.

She described FAAN as a national asset designed to operate airport infrastructure and equipment, as well as a tool for economic development.

All these might have contributed to the improved revenue but did not transcend to improvement on the airport infrastructure.

In the document, aside from the increased revenue generation and the determination to reposition the airports, Kuku explained that FAAN faces several challenges that impact its efficiency and operational capacity.

She listed some of these challenges, including ageing infrastructure, security challenges, and land encroachment.

The document further showed that “many of FAAN’s facilities, including terminals and runways, are ageing and in need of significant repairs and upgrades. This affects operational efficiency and safety and necessitates substantial investment for modernisation. Despite efforts to enhance security at airports, FAAN continues to face challenges in managing security risks, particularly with the increase in air travel and the potential for terrorist activities or other threats at key airport locations. Due to a lack of perimeter fence, the Authority’s landmass is constantly being encroached on all over the country.

“There is CCTV inadequacy, inadequate staff training quarterly with the requisite skills and knowledge to maintain equipment, and also cope with modern technologies. Obsolete equipment such as old fire tenders, generators, air conditioning systems, conveyor lines with worn-out slats, belts, and motors can be found in many airports that have low efficiency and have high maintenance costs.”

She equally lamented FAAN’s struggles with  shortage of staff across various directorates, which impacts its ability to effectively manage operations, maintenance, and customer service, hinting that the under-resourcing of critical roles hinders the agency’s ability to meet the growing needs of the aviation industry.

Despite the significant increase in revenue, she explained that FAAN often faces budgetary limitations that hinder its ability to implement key development projects, including the necessary upgrades to airport facilities and infrastructure.

She, however, called for sustained investment in both human and physical capital, which she said are critical to the continued growth and modernisation of Nigeria’s airports, adding that FAAN will prioritise enhancing passenger experience by implementing advanced technologies, improving customer service training for staff, and ensuring seamless operations across all airports.

She said, “Special attention will be given to reducing processing times, upgrading lounges, and introducing more user-friendly facilities for passengers and stakeholders. FAAN also aims to transition from manual processes to full digitalisation in its operations, improving efficiency and service delivery.”