By Chinelo Obogo
The Ministry of Aviation has revealed that the concession of the Nnamdi Azikiwe International Airport (NAIA), Abuja, and Mallam Aminu Kano International Airport (MAKIA), Kano has been approved by the Federal Executive Council.
In a statement by the Special Assistant on Public Affairs to the Minister of Aviation, James Odaudu, the Minister said there was a thorough and comprehensive evaluation process that commenced with the Request for Qualification (RFQ) advertised in local and international media on 16th August 2021, and after subsequent evaluation of technical and financial bids, coupled with due diligence visits conducted from December 27th to 29th and January 9th to 10th 2023, the Corporacion American Airport Consortium emerged as the preferred bidder.
“The concession of NAIA and MAKIA will considerably enhance the operational efficiency and profitability of these airports, repositioning them to operate optimally and competitively. This agreement, under a Public-Private Partnership arrangement, will be effective for 20 years for NAIA and 30 years for MAKIA
“In addition, the Corporation American Airport Consortium is committed to making upfront payments of USD 7 million for NAIA and USD 1.5 million for MAKIA. During the concession period, total projected nominal revenues accruable from the combined concession of NAIA and MAKIA exceed $4 billion. Over 70% of these projected revenues will be payable to the Federal Airports Authority of Nigeria (FAAN), thereby generating additional revenue sources for the Federal Government,” he said.
Reacting to the approval, coming same day as signing of the Memorandum Of Understanding (MoU) for the commencement of the African Aviation and Aerospace University (AAAU), Minister of Aviation and Aerospace, Hadi Sirika said the period is momentous for Nigeria’s aviation industry.
The partnership with the Corporacion American Airport Consortium, he said, underscores the Administration’s dedication to improving the standards of the nation’s airports, providing world-class services to all travellers and generating considerable economic benefits for the country.
In a related development, the Federal Executive Council also approved the change of nomenclature of the Federal Ministry of Aviation to the Ministry of Aviation and Aerospace with immediate effect. The new nomenclature is in line with the nature of the sector, being under the exclusive management and regulation of the Federal Government.