FAAN Remits N16.7bn To Federation Account in 2021

*Tasks FG to stop contributions to bridging aviation infrastructure deficit

The Federal Airports Authority of Nigeria (FAAN) has remitted N16.7 billion to the Federation Account Allocation Committee (FAAC) in 2021.

This is just as the Authority is asking the Federal government to suspend the contributions from it in other to bridge the infrastructure deficit in the sector.

The Authority also said the call for suspension of the contributions in is accordance with the International Civil Aviation Organisation (ICAO) standard which says that all revue generated must be ploughed back into infrastructure development of the sector.

Making a presentation before the joint committees on Aviation from the National Assembly, Captain Rabiu Yadudu, managing director of FAAN, also said the Authority has shifted its focus from the aeronautical sources of revenue to the non-aeronautical to further improve the revenue performance.

“It is worthy to mention that even though FAAN does not have an operating surplus, we had to remit N16.7 billion to the Federation Account as a contribution to the Consolidated Revenue Fund as at the end of December 2021, for the year 2021 alone, despite the effect of the pandemic during this period. This has impacted our ability to adequately meet up our obligations.

“The Industry has infrastructural deficit which has to be bridged. Therefore, Government Support in this area is needed. This can be achieved by suspending the contributions to the Federation Account in compliance with ICAO Standards and Recommended Practices (SARPs) Doc 9562 on Airport Generation, which provides that:- Revenue Generated by Airports should be transparently re-invested wholly in operating and developing Airport facilities’’., he said.

Speaking on non-aeronautical revenues, he said: ‘’The Authority has shifted its focus from the aeronautical sources of revenue to the non-aeronautical to further improve the revenue performance. Aggressive sensitization is going on concerning areas at the airports where investors can come in. Specific areas where effort is being focused on include: Advertisement, car parks, Private Airport Terminal operators and Bi-Courtney (BOT) revenue sources. In the advertisement, the Authority is taking steps to terminate the non-performing concession agreements and engage new concessionaires. We hope to make significant progress before the end of the 2nd quarter.

“Car parks Automation at the various Airports is presently ongoing, before the end of the year we should have achieved a great result. On the Private Airport Terminals, stiff sanctions are going to be applied for non-payment for various services rendered by FAAN’’, he added.

The Authority is also proposing a Revenue Budget of N188 billion for the year 2022 as against N125.4 billion approved for the year 2021, saying the projection was arrived at with the hope that the effect of the pandemic would have been over thereby leading to an increase in passenger traffic, as well as a boost in the non-aeronautical revenue base of the Authority.