Only three of the 22 airports that the Federal Airports Authority of Nigeria (FAAN) manages are profitable, according to Olubunmi Kuku, the managing director.
According to Kuku, FAAN is presently providing cross-subsidies to the remaining 19 airports to maintain their operations. The head of FAAN also noted that the authority will provide aviation security and fire and rescue services to new airports being developed in many north and southwest states. She did note, however, that the authority faces a major issue because it pays the federal government half of its revenue.
Kuku emphasized that economic activity and GDP growth, not the development of additional airports, are what fuel passenger flow. In order to boost airport traffic, she emphasized the significance of concentrating on important industries like trade, manufacturing, and tourism. To increase the number of local and international routes, FAAN is working with international organizations such as the Federal Ministry of Aviation and the International Air Transport Association (IATA).
The administration is also developing plans to turn Nigeria and certain of its airports into hubs for transportation. According to Kuku, there are currently over 4 million passengers from Nigeria that travel abroad, underscoring the necessity of using infrastructure effectively to preserve and maintain the facilities.
The financial sustainability of the aviation industry in Nigeria is called into question by the disclosure that only three of the 22 airports under FAAN’s management are profitable. The authority needs a more sustainable finance mechanism for airport operations, as seen by its reliance on cross-subsidization and its revenue contribution to the federal government.
Policymakers and other stakeholders must place a high priority on economic activities that increase passenger traffic and guarantee the effective use of the nation’s existing infrastructure while it develops new airports. Nigeria can endeavor to turn its airports into prosperous centers that support the country’s overall economic development by tackling these issues.