Business Hilights

Tracking Nigeria's Headline Business News Online


FAAN seeks reduction of its revenue contributions over poor income

Ad 2
Ad 3

The Federal Airports Authority of Nigeria (FAAN) has asked to discontinue the 25 per cent revenue contribution it makes to the federation account. The Managing Director of the agency, Captain Rabiu Yadudu, made the appeal recently before the Senate Committee on Aviation came for their oversight function and he said that if the 25 per cent contribution ends, it will ensure development if revenue generated from the sector is ploughed back. This was even as he asserted that revenues from only two airports; the Murtala Muhammed International Airport (MMIA) Lagos and the Nnamdi Azikiwe International Airport (NAIA) are sustaining other airports in the country. He also highlighted the global economic challenge that has affected airline operators causing them to reduce fleet, frequencies or totally withdraw operations thereby affecting the agency’s revenue generation. Captain Yadudu further decried the still rising operating and maintenance cost of the new terminals and existing ones due to inflation and the devaluation of the Naira but stressed that FAAN is tweaking its plans to make other airports that are not breaking even to perform.

Business Hilights is an online news channel conceptualized and structured to report and track on a daily basis; latest developments in critical business sectors to serve as a one stop news gateway for governments, foreign and indigenous investors.