FAAN Chief Decries Insufficient Funding for Airport Rehabilitation

The Managing Director of the Federal Airports Authority of Nigeria (FAAN), Olubunmi Kuku, has raised concerns over the inadequacy of the N23.1 billion allocated for the rehabilitation and repair of airport facilities nationwide. Speaking on Channels TV’s The Morning Brief on Tuesday, Kuku underscored the urgent need for substantial capital investment in the aviation sector, highlighting that the current budget barely scratches the surface of the required infrastructure upgrades.

Kuku noted that airports, terminal areas, land sides, and air sides all demand significant improvements. She emphasized the critical nature of the aviation sector and the substantial funding it necessitates. “When you refer to N23.1 billion or N23 billion, it may not actually scratch the surface if you look at where we are in terms of infrastructure development and upgrades,” she stated.

She pointed out that FAAN manages 22 airports across the country, with only three being profitable. The remaining 19 are subsidized by FAAN, and this support is set to extend to new airports currently under development. “We are 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 explained.

Further complicating matters, FAAN allocates 50 percent of its revenue to federal coffers, which poses a significant challenge. Kuku revealed that the authority is in discussions with various branches of government to seek financial relief.

Addressing the influence of GDP growth and economic activities on passenger traffic, Kuku stressed the importance of focusing on key sectors like trade, manufacturing, and tourism to drive airport traffic. She argued that rather than constructing new airports, attention should be given to the activities that can boost traffic to existing airports.

Kuku also highlighted FAAN’s collaboration with international organizations, such as the International Air Transport Association and the Federal Ministry of Aviation, to expand both domestic and international routes. Initiatives are underway to transform Nigeria and certain airports into transit hubs, aiming to build a network where airports can effectively serve as feeder points.

She concluded by noting that almost 4 million passengers travel internationally from Nigeria, underscoring the importance of efficient infrastructure use for the sustainability of these facilities.

This financial shortfall and strategic focus come at a critical time for Nigeria’s aviation sector, as it seeks to enhance its infrastructure and service delivery amidst growing demands and challenges.