The Federal Government is exploring various options to ensure the economic viability of Nigerian airports, including the potential concession of 19 airports, as revealed in an interview with correspondent in Abuja.
Olubunmi Kuku, Managing Director of the Federal Airports Authority of Nigeria, has revealed that merely three out of the 22 airports under the authority’s management are generating profits, and these three are significantly driving the growth of the country’s aviation sector.
During a recent appearance on Channels TV’s morning show, Kuku, disclosed that 19 of the country’s airports, which are under FAAN’s management, require subsidization due to inadequate passenger traffic, resulting in operational costs that exceed revenue generated.
She further said that the majority of the 22 airports managed by FAAN require maintenance and upgrades in critical infrastructure like the terminal areas, the landside as well as the airside.
The revelation by the FAAN MD tallies with findings that only four out of over 30 airports in the country are economically viable, contributing N5.57tn to foreign trade in 51 months.
The four airports, which include Nnamdi Azikiwe International Airport, Muritala Mohammed Airport, Kano and Port Harcourt, contributed a sum of N529.68bn in total exports and N5.05tn in imports between January 2020 and March 2024.
Despite state governments’ plans to build new airports to boost trade, data suggests that most airports are not financially sustainable enough to support international trade.
The FAAN MD revealed in the interview that the authority is considering a cross-subsidy scheme to financially support the development of select new airports.
Speaking with our correspondent on the plans to improve the viability of these Airports, Keyamo said, “We are exploring different options, including concessions, to make them viable.”
