FAAN: Only 3 of 22 Nigerian airports are profitable

The Federal Airports Authority of Nigeria (FAAN) says only three of the 22 airports in Nigeria are profitable.

Speaking on Channels television on Tuesday, Olubunmi Kuku, FAAN’s managing director, said several states in the north and south-west are developing new airports.

She said the authority is cross-subsidising the other 19 airports and will continue to do so for some of the new airports being developed.

“I started off by saying that we have 22 airports which we own and manage,” Kuku said.

“We also have about six or seven airports that are either owned by state governments or private individuals or entity which we also support with either aviation security or fire and rescue services.

“We have a number of states in the north as well as in the south-west 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 contribute largely to the sustenance of the airport companies that we run.

“I would also say that we are actually cross-subsidising the other 19 airports today and in most instances, we will substitute or cross-subsidise for some of the airports that are coming on board as well.”

Kuku said the FAAN contributes 50 percent of its revenue to the federal coffers which is a major challenge, adding that the authority is in discussions with the various arms of government to seek some relief.

‘ECONOMIC ACTIVITIES DRIVE PASSENGER TRAFFIC, NOT NEW AIRPORTS’

The FAAN boss said passenger traffic is driven by gross domestic product (GDP) growth and economic activities rather than the construction of new airports.

Kuku said it is important to focus on key activities such as trade, manufacturing, and tourism to increase airport traffic.

“Rather than building new airports, we need to look at the bottom of the value chain to determine what activities can drive traffic into these airports,” Kuku said.

She said FAAN is collaborating closely with international organisations, including the International Air Transport Association (IATA) and the federal ministry of aviation, to expand both domestic and international routes.

Kuku said there are initiatives in place to transform Nigeria and specific airports within the country into transit hubs.

“What that means is that we start to build a network of airports where we can push our feeders to some of the other states or to some of the other locations and start to utilise our airports,” she said.

The FAAN boss said nearly 4 million passengers currently travel internationally from Nigeria, stressing that the efficient use of infrastructure is essential for sustaining and maintaining the facilities.