…As aviation contributes $1bn to economy
By Louis Ibah
The Federal Airports Authority of Nigeria (FAAN) is seeking private sector funding in its efforts to boost the state of infrastructure in some of the nation’s airports.
Some of the new infrastructure which FAAN said it needed the private sector participation includes the construction and management of hangar facilities and well as fixed base operations (FBOs); construction and management of hospitality facilities, including but not limited to hotels; construction and management of automated car parks; development of terminal buildings; construction of runways, taxiways and aprons; construction and management of helipads; and construction and management of independent power plants (IPPs) and aviation fuel depot facility. FAAN is also demanding that the private sector partner with it in the construction and management of cargo air services for perishable agricultural produce.
Managing Director/CEO of FAAN, Mr. Saleh Dunoma, who stated this at the weekend said the aviation industry contributes over $1 billion to the Nigerian economy annually and was supporting more than 150, 000 jobs in Nigeria, thus creating immense business opportunities for both local and foreign investors.
Dunoma said despite the recent decision of the federal government to concession airport facilities, FAAN has adopted the system of partnering with the private sector, a strategy that has become inevitable given the large number of international airlines that now operates into the country.
Dunoma explained that for third party businesses, FAAN would provide land or developed aviation and non aeronautical facilities, under appropriate business and financial arrangements, in line with the agency’s commercial and investment policy guidelines for leases and rentals.
Said Dunoma, “FAAN offers an array of irresistible incentives and doing business with us has become a lot easier. We are investing heavily in the renewal and expansion of infrastructure at our airports with five international buildings nearing completion at Lagos, Abuja, Port Harcourt, Kano and Enugu airports.
“Our aim is to create capacity and promote excellent investment environment. With tourism growing in direct proportion to the Nigerian economy, international best practice regulatory policies in place and world class service delivery at our airports, we are poised for a significant growth in passenger traffic and therefore confident that investors, both local and foreign, would realise prompt and significant returns on their investments
“In the interest of transparency, FAAN advertises all commercial concessions and infrastructural facilities and calls for bids for such concession/facilities from local and international investors,” Dunoma added.
According to him, over the years, FAAN had realised that the private sector must be engaged to develop and boost businesses at the airports. “That is the way it is done in other parts of the world. With this new strategy, it is hoped that in the coming years, FAAN would earn more from nonaeronautical revenue sources than from aeronautical sources,” he assured.