The Federal Airports Authority of Nigeria (FAAN) has said that only three out of Nigeria’s 22 airports are commercially viable.
Speaking on Channels Television’s “Morning Brief”, which was monitored by Daily Patriot on Tuesday, July 9, the Managing Director of FAAN, Olubunmi Kuku, said these three airports contribute to the sustenance of the nation’s airport companies.
There are a total of 32 airports in Nigeria, out of which 22 are owned and managed by the agency.
Her words, “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 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.”
Kuku also noted that 19 airports across states of the country require subsidies because they do not attract the adequate passenger traffic needed to cover their operational costs.
She said, “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.”
No need for new airports in Nigeria
Continuing, Kuku noted that most of the 22 airports managed by FAAN are in dire need of critical infrastructural upgrades including terminal areas, landslide and airside facilities.
She also pointed out that the majority of Nigeria’s airport runways have exceeded their 20-year validity period and are due for an upgrade.
Addressing these developmental goals, she said will be a focus for the airport authority this year.
The FAAN MD emphasized that instead of building new airports, state governors should focus on boosting manufacturing, trade, and tourism activities to increase passenger traffic and revenue in their states.
“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,” she said.
Kuku also said it is important to note that economic activities in states where airports are built drive passenger traffic, not the construction of new airports.
