Nigeria’s Minister of Aviation, Sen. Hadi Sirika has posited that all airports in Nigeria are currently operating in a suboptimal environment, and are in urgent need of infrastructure investments and modernization to upgrade to international standards.
According to the minister who made this observation at a virtual meeting with Aviation stakeholders on Tuesday, he noted that with the population growth and its increasing affluence, a private operator of the four main airports in the country will be able to operate the airports with an international standard and expand the facilities in accordance with traffic demand at each airport.
Speaking on the Nigerian Airport Concession Strategy, he explained that typically on Airport Public-Private Partnership, PPP projects, the Authority sets minimum service levels for the Concessionaire to comply with, adding that this will provide the Authority with a tool to set service standards for the operation of the terminals and secure reliable high-level products.
“The Nigerian Airport Concessions will be a Terminal Concession and the majority of its revenue will be derived from Non-Aeronautical sources; All other facilities at the airports and existing concessions outside the Airport Terminals will still be managed by FAAN.
“The Concessionaire will provide the investment required to upgrade the existing terminals, take over the new terminals and maintain them over a period of time to be determined based on financial assessment of each transaction; and Passenger Service Charge and Security Charge will be shared by FAAN and the Concessionaire and FAAN’s share of the charges shall be paid directly to FAAN by IATA,” he said.
He further pointed out that the concessionaire will sign service level agreements with the Federal Airports Authority of Nigeria, FAAN, and the Nigerian Airspace Management Agency, NAMA to ensure that airport operates efficiently.
Sirika added that FAAN will be required to provide manpower through Aviation Security, AVSEC, for the security of both the Airside and Landside, noting that the concessionaire will provide and maintain landside equipment, while FAAN will continue to provide and maintain Airside security equipment.
“All existing concessions within the Terminal concession will be inherited by the concessionaire and will be allowed to run its course before any review.
“Tariffs will be regulated in accordance with the procedures set in the concession agreement,” he explained.
Acting Director-General, Infrastructure Concession Regulatory Commission, ICRC, Michael Ohiani, noted that the ICRC has availed the aviation ministry of all it needs for full compliance and international best practices in the concessioning process, adding that they will ensure the project is delivered transparently.
FAAN’s Managing Director, Capt. Rabiu Yadudu, while noting that a lot has been done in the last eight months to make it clear to the people that “there are no fears”, added that the policies of the government are people-friendly.
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