The Managing Director of the Federal Airports Authority of Nigeria, FAAN, Olubunmi Kuku, has revealed that only 3 out of 22 Airports in the country are profitable.
The MD maintained that of all the Airports under her management only three are profitable and contribute largely to the growth of the aviation sector.
Kuku disclosed this while appearing as a guest on the Channels TV Morning Show programme on Tuesday. She noted that 19 of the nation’s Airports under FAAN were being subsidized. This, she said is because they do not get passenger traffic commensurate to their operational cost.
The MD further stated that the majority of the 22 Airports managed by FAAN require maintenance and upgrades in critical infrastructure. These she listed as the terminal areas, the landside as well as the airside.
Kuku’s revelation tallies with findings by The PUNCH that only four out of over 30 Airports in the country are economically viable. It stated that the four Airports only contribute N5.57tn to foreign trade in 51 months.
According to The PUNCH, the four Airports, which include Nnamdi Azikiwe International Airport, Muritala Mohammed Airport, Kano and Port Harcourt International Airports contributed a sum of N529.68bn in total exports and N5.05tn in imports between January 2020 and March 2024.
According to the findings by The PUNCH, these statistics indicate that most airports are not economically viable to support foreign trade. This is despite plans by various State Governments to commence construction of airports purportedly to attract trade.
However, in the interview, the FAAN MD mentioned that the authority plans to provide cross-subsidies to certain new airports under development.
She said, “I started by saying that we have 22 Airports which we own and manage.”
“We also have about six or seven Airports that are either owned by State Governments or private individuals or entities. Which we also support with either aviation security or fire and rescue services. We have several States in the North, as well as in the Southwest that are coming up with new airports.
“I would say that based on the stats today, only three of the 22 Airports are actually profitable. And that contribute largely to the sustenance of the airport companies that we run.
“I would also say that we are cross-subsidizing the other 19 Airports today. And in most instances, we will substitute or cross-subsidize for some of the airports that are coming on board as well,” Kuku added.
The MD mentioned that FAAN allocates 50 per cent of its revenue to the federal government, posing a significant challenge. She, however, added that the authority was engaging in discussions with different branches of government to explore potential relief measures.
She said, “Passenger traffic correlates more strongly with Gross Domestic Product, GDP, growth and economic activities rather than the construction of new airports.
Kuku, therefore, emphasized the importance of prioritizing activities like trade, manufacturing, and tourism to boost airport traffic.
“Rather than building new airports, we need to look at the bottom of the value chain. This will help us to determine what activities can drive traffic into these airports,” she said.
Kuku also mentioned that FAAN was working closely with international organizations. Such as the International Air Transport Association and the Federal Ministry of Aviation to enhance domestic and international route expansions.
She noted that there were ongoing initiatives aimed at developing Nigeria and transforming specific airports within the country into transit hubs.
“What that means,” she said, “is that we start to build a network of airports. Where we can push our feeders to some of the other States. Or some of the other locations and start to utilize our airports.”
Kuku also mentioned that close to four million passengers currently travel internationally from Nigeria. She, however, emphasized the critical importance of efficient infrastructure utilization to sustain and upkeep the facilities.
Checks by The PUNCH on the contributions of State’s Airports to foreign trade showed they performed poorly. This is when compared to other means of transportation in the country.
“Using the Foreign Trade Statistics report released by the National Bureau of Statistics, NBS, between January 2020 and March 2024, the sector aided import and export trade worth N5.57tn in 51 months.”
“This is, however, 3,000 per cent or N167.83tn less than the N173.4tn contributed by the Apapa seaport within the same period.
“A further breakdown showed that N331.82bn worth of goods was exported. N197.86bn were re-exported, and N5.04tn was imported via the airports.
According to The PUNCH, the Murtala Mohammed Airport in Lagos State recorded the highest amount with N2.59tn. It was followed by the Nnamdi Azikiwe International Airport, Abuja with a total trade transaction of N740.75bn.
“Mallam Aminu Kano International Airport and Port Harcourt International Airport got N743bn and N112.38bn,” it stated.
According to the report, the non-viable Airports included Asaba Airport, Akwa Ibom Airport, Uyo and Bayelsa International Airport. Others are MKO Abiola International Airport, Osun, uncompleted, Ekiti Cargo Airport, Anambra Cargo Airport, Umuleri, Abia Airport and Wachakal Airport.
Also listed as non-viable are Damaturu, and Dutse International Airport, Lafia Airport, uncompleted, Kebbi Airport, Auchi and Airport, Edo State, uncompleted. Others are the Zamfara Airport, Nasarawa Airport and Gombe Airport, Enugu, Kano, Kaduna, Benin, Owerri, Jos, Sokoto, Maiduguri and Yola. Also included are Bauchi, Akure, Ibadan, Ilorin, Calabar, Minna and Katsina airports.
source: The PUNCH
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