The managing Director of Federal Airport Authority of Nigeria (FAAN), Engineer Saleh Dunoma has given reasons behind the plans by the federal government to privatise some airports in the country.
Explaining the issues in an interactive session with members of the Institute of Directors (IoD) in Lagos, Dunoma said in his presentation, titled: “Nigeria Airports remodelling and concession: Challenges and prospects”, that since aviation business is capital-intensive and infrastructure are over stretched, there is need for private partner participation in the concession process.
The FAAN boss disclosed that the remodelling and concession of Nigeria Airports would bring new business opportunities and employment after the massive reconstruction and upgrade of airport terminals at the 22 federal government owned airports across the country, with improved service delivery and good standards.
Before now, FAAN had refuted remodelling and concession of Nigerian airports, but maintained that it is not selling them to private owners as misconstrued, but leasing some parts for some years and later return to the owners the federal government.
Dunoma represented by the Director, Legal services, Ngozi Jipreze, explained that under the concession process, the Federal Government still retains the ownership of all airports and facilities, which may not be so with privatisation.
The Federal Government as the primary investor in Nigeria’s 22 airports has gradually opened doors for genuine private investors to partner and work with it to explore the various opportunities in the sector through concession process.
The anger of stakeholders is not that government plans to concession airports, but it is only looking at viable ones instead of privaitisng non-viable so that the investors will raise their efficiency.
FAAN maintained that the concession process would be transparent and undergo due process with terms and conditions put in place for necessary commercial offerings, which will result in renewed interest by investors in the sector.
He added that other areas such as airports security and safety, data gatherings, and technical advisers among others would be considered in the concession process.
While allay9ng the fears of some aviation workers that the concession process would lead to massive job losses in the aviation agencies, FAAN boss said “Stakeholders and partners in airport services delivery including the airlines, handling companies, retailers, contractors among others have been aligned with these objectives to improve customer service standards.”
In his response, the Chairman, Institute of Directors Nigeria (IoD), Samuel Yemi Akeju, noted that the forum addresses current sensitive issues in many sectors; even as it is designed to establish and maintain contact among business leaders at the highest levels.
