• Home
  • News
  • Lagos and Abuja airports the only profitable airports, they sustain others – FAAN wants payment of 25% revenue to federation account stopped

Lagos and Abuja airports the only profitable airports, they sustain others – FAAN wants payment of 25% revenue to federation account stopped

The Federal Airports Authority of Nigeria (FAAN) has revealed that only the airports in Lagos and Abuja are profitable in the country and the agency would like to stop the 25 per cent revenue contribution it makes to the federation account, as the other airports are being sustained by the Lagos and Abuja airports

The Managing Director of the agency, Captain Rabiu Yadudu, made revelation on Sunday, March 7, when the Senate Committee on Aviation came for their oversight function.

According to Yadudu,  if the 25 per cent contribution ends, it will ensure development of the aviation sector as revenue will be put back into airports.

Stating that 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 caused by covid-19 that  has affected airline operators causing them to reduce fleet, frequencies or totally withdraw operations thereby reducing  revenue generated by the agency.

Yadudu  also revealed a lot of arilines are owing FAAN noting a particular airline owes N13 billion for services rendered and unpaid for.

“On the capacity and contribution of airports to revenue generation, it is the MMIA and Abuja that mainly supports other airports. The industry is still having infrastructural gap to stabilise, therefore, government’s support in stabilising the industry 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 the airport should be transparently re-invested wholly in operating and developing airport facilities,” he said. 

Chairman Senate Committee on Aviation, Senator Smart Adeyemi, reacted to Yadudu’s message saying they will have to re-edit the Constitution to stop the contribution from being made.

“The MD has been talking to us on aviation, especially FAAN, to be able to keep a good percentage of its resources generated internally. I have nothing against that for me; I feel it is good to keep so to be able to carry out the ever increasing need to maintain standards and to update the facilities of the industry but again these are issues that border on constitutional  provisions as money must be appropriated for,”Adeyemi said.

Related posts

9 of 10 medical consultants are planning to leave Nigeria – MDCAN


EFCC denies involvement as security agents raid home of Justice Mary Odili


Court stops DSS, others from arresting Emefiele


Leave a Comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More