By Chinelo Obogo
The Managing Director of the Federal Airport Authority of Nigeria (FAAN), Olubunmi Kuku, has said the agency is facing an urgent need to raise airport tariffs in order to address critical necessities like runway rehabilitation, pension liabilities, and other essential infrastructural needs, which would require over N735 billion.
Kuku, who said this during a tour of the airport facilities in Lagos by the Permanent Secretary of the Ministry of Aviation and Aerospace Development, Dr. Ibrahim Kana, on Wednesday, acknowledged the industry’s overall increase in tariffs and emphasised the importance of aligning any adjustments with the quality of services provided. However, she noted that certain increases might be delayed due to facility constraints, as there needs to be a commensurate balance between any hike and the services offered.
“We do want to increase our tariffs because, obviously, everyone has increased, but we recognise the fact that some of these tariffs are driven by the services that we offer, so we have to make sure that we can commensurate the services that we are offering with a tariff increase. The tariffs are due for increase; however, we may have to push back on certain things because of the available facilities,” she said.
Speaking on the critical issue of the pension backlog, Kuku said, “We have a major pension liability in our books. As of 2021, the figure was N155 billion, and with the ongoing valuation, by the time it is done, it would be much higher.”
Further explaining the challenges the agency is facing, Kuku said that aging airport infrastructure, including terminals and runways, compromises operational efficiency and safety, hence the need for substantial investment.
She noted that many of the airports’ runways, built in the late 70s, have outlived their lifespan and at least N580 billion is needed to rehabilitate the runways across the country.
“There are many haphazard jobs and abandoned projects at our airports, and the runways require major rehabilitation. At least N580 billion is required to fix runways across all airports. Many of FAAN’s facilities, including terminals and runways, are aging and in need of significant repairs and upgrades, as most of the airports were built in 1978 and their lifespan is between 20 to 25 years. This affects operational efficiency and safety and necessitates substantial investment for modernisation.
“Also, 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 a perimeter fence, the Authority’s land is constantly being encroached on all over the country.
“Obsolete equipment such as old fire tenders, generators, air conditioning systems, and conveyor belts with worn-out slats, belts, and motors can be found in many airports, leading to low efficiency and high maintenance costs. FAAN plans to modernize airport infrastructure by renovating terminals, expanding runways, and upgrading navigational aids.
“In 2025, the construction of a new and befitting headquarters for FAAN will also be a top priority, providing a centralized and modern facility to enhance operational efficiency. Priority will be given to improving critical facilities at major international airports and enhancing regional airport capacity to meet growing passenger and cargo demands. We need to be deliberate about it,” she said.
Kuku also disclosed that FAAN plans to increase its revenue for 2025 by adopting innovative strategies to increase non-aeronautical revenue streams, such as commercial concessions, advertising, real estate development, and cargo operations. She said they will also focus on Public Private Partnerships to expand investment opportunities and develop underutilized assets.
“Staff training on aviation security and safety procedures will be intensified to address emerging challenges and risks in the industry. FAAN will upgrade and maintain e-procurement systems to reduce technical downtimes. We plan to align FAAN’s goals with National Aviation policies and international standards. The Authority will collaborate with industry stakeholders to adopt green airport initiatives and promote environmental stewardship. FAAN will prioritize increasing its workforce strength to support growing operations and ensure employee welfare through improved working conditions, comprehensive training, and enhanced benefits,” she added.
While responding, Dr. Ibrahim praised the ongoing reforms at FAAN, stating that Kuku’s managerial expertise has been pivotal in enhancing operational efficiency and service delivery. He credited the success recorded at FAAN to the leadership of the Minister of Aviation and Aerospace Development, Festus Keyamo, saying that his proactive policies and strategic direction have created an enabling environment for growth in the sector.
Reaffirming the ministry’s full support for FAAN, Dr. Ibrahim pledged to work closely with the management to sustain the momentum of development. “The aviation sector demands constant innovation and expertise. I urge everyone to put on their thinking caps and contribute to improving the system. Together, we can elevate Nigeria’s aviation industry to global standards,” he said.