Managing Director of the Federal Airports Authority of Nigeria (FAAN), Olubunmi Kuku, on this interview, addresses sundry points within the air transport sector, together with the controversial creation of extra state-owned airports, stalled concession plan, and perennial extortion on the amenities.
There are plenty of challenges throughout the airports nationwide. What methods have you ever adopted to deal with them?I feel we’ve spent an excessive amount of time speaking in regards to the decay, and it’s time to begin fixing and that’s precisely what we’re doing. So, let me speak in regards to the work that we’re doing, versus what has occurred. The primary effort is to dam some rapid gaps, and we did that with minor rehabilitation works at plenty of our airports. I’m certain in case you’ve been a travelling public over the past 90 days, you’ll see that the airports are cleaner. They’re friendlier. By way of the environment, we’ve lit up a few of these airports much more and it’s extra spacious in sure areas. That’s simply the minimal that we will do by way of interventions.
How viable are these airports at present? Many have been racking up money owed, but states appear to be constructing extra. Would you subscribe to shutting them down?In finance, there’s something we discuss with as value. So, you’ve already made the funding in infrastructure, what you want to do is basically to plug that funding in an effort to enhance your fee of returns. I don’t advocate shutting down these airports in any respect. And in case you’ve had conversations with me over the previous few months, what I’ll say to you is that there are two issues. One is the economics of the airports, which is viability. The second is the social impression that the airport brings into driving the economic system, or not less than serving to us to show across the economic system.
Our business and enterprise growth workforce, in addition to myself, clearly, with the steerage of the Honourable Minister, have labored very intently with a number of the state governments by way of what they will do. One is essentially round cargo. I feel cargo is a candy spot for us. States like Kano, Plateau, and Ogun are aiming to drive cargo successfully as effectively. But it surely’s not nearly constructing the infrastructure or investing extra within the infrastructure on floor. It’s actually ensuring that there’s a feeder system that begins all the way in which from the underside of the worth chain to drive cargo, the assorted segments of cargo, I feel agro and farmer are two important areas that we’ve been taking a look at.
I feel if we wish to drive financial exercise at this airport, it’s actually to guarantee that we’re in a position to drive the GDP development. The second is basically about enhancing the infrastructure linkage to the airport amenities, ensuring that collaboration between ourselves and the state governments and, in fact, on the federal stage as effectively, ensuring that the highway community that results in the airport and the transit amenities can be found.
The earlier administration had a plan to concession the airports starting with the primary 4. The Lagos, Abuja, Port Harcourt and Kano airports have been allotted to bidders, however that has modified. The place are we on the concession of main airports?I’m glad we’re all on the identical web page that personal sector participation is required. The Honorable Minister has been working very intently with us at FAAN to guarantee that the concession course of is thorough. There was a evaluate. In fact, there was a evaluate of the final concession course of as effectively. There have been some notices that we put within the paper a few months in the past, largely round curiosity or intent in these airports that we wish to concession. There’s some advisory work that can be ongoing by way of mission growth and the economics.
In the case of concessions, it’s one factor to doubtlessly discover a non-public sector companion to work with you on these concessions, however what’s extra essential is to just remember to have the identical targets. The Honourable Minister has mentioned there shall be no jobs misplaced. In fact, that additionally requires dialog by way of the economics and the financials of what occurred. So at the moment, we’re within the mission growth stage.
Aviation is capital intensive, to warrant the Aviation Security Spherical Desk Initiative’s name for measures just like the institution of an aviation finance financial institution, which shall be a single digit lending fee, and the exemption of native refineries of Jet A1 from taxation? Do you agree with them?Whereas I respect the Aviation Spherical Desk by way of their ideas and their monumental contributions to the sector, I’m truly not of the opinion that we must always arrange one other establishment for financing aviation. I feel we’ve plenty of monetary establishments that exist at present. For instance, you’ve gotten a number of the business banks despite the fact that they lend at double digits. What I feel we’d like is extra specialised banking, or specialised financing that we will leverage. We additionally want to contemplate issues that may assist us enhance the financing atmosphere; some kind of monetary devices, and credit score ensures for the business.
Present some clarifications on the N580 billion price range for the brand new Abuja runway and rehabilitation of others.I’d prefer to make clear two issues. We now have numerous runways in Nigeria at present. We now have talked about to you that there are 22 airports which can be owned by the federal authorities. We additionally help some airports which can be owned by the state. I did make particular reference to airports which have runways that had exceeded their lifespan. The typical lifespan of a runway is about 20 to 25 years. A whole lot of our runways in Nigeria have truly exceeded that point, that means that we’ve had them for 30 to 35 years. And what it means is that we have to truly reconstruct these runways.
The N580 billion initially talked about is definitely for over 17 runways. And it’s not simply the runways. It contains some perimeter roads. It contains fencing. I’ve seen some commentaries the place persons are saying, ‘what do they want all of this cash for?’ I encourage you, please simply take a look at Google in case you’re within the development enterprise or within the aviation enterprise to attempt to perceive what it means to construct runways, taxiway hyperlinks, and apron enlargement work that we have to do, and naturally, to guarantee that we put a protected atmosphere collectively for all the things that occurs on the air aspect.
Now, the reference that the Honourable Minister made whereas we’re on the Nationwide Meeting (lately) was particular to the second runway mission in Abuja. That mission was initially awarded to some consultants and contractors by earlier administrations. I imagine that from conversations with the ministry, the scope of that mission has modified. There has additionally been value variations, in fact, which is affected by the scope and, in fact, FX fluctuations.
There’s some further data that has come on, which the minister has, and which, in fact, offers him with plenty of discomfort across the numbers which were supplied to him. And to that impact, he has largely come out to say, as an alternative of accepting a determine that has been supplied to him, he wants to offer extra oversight and extra scrutiny.
Circumstances of touting, avenue begging and extortion are nonetheless rampant on the airports. You as soon as spoke about this in a viral video. How is FAAN coping with this otherwise?I’m certain you realize that in Nigeria, on this economic system, there’s no arduous resolution or coverage that’s put out that doesn’t face any resistance. We now have confronted some resistance with the implementation of that coverage, however I guarantee you that the Honorable Minister and I are extraordinarily relentless. We now have come out. We now have engaged with our neighborhood, and naturally, with the Safety Council that we meet with. The Nigerian Civil Aviation Authority has additionally had a number of periods, and we’ve made certain that all the companies which can be working very intently with us perceive the implications of our actions. We did discover one or two folks culpable. I discussed that we’ve Justice of the Peace courts which were arrange in a few of our areas. We guarantee that they’re prosecuted and made examples of.
I additionally wish to use this medium to let each Nigerian know that in case you are stopped on the airport and somebody is asking you to help them in any illicit actions, you can see your self culpable, together with these officers. So I’m saying very boldly once more, and I’m supporting my Honourable Minister to say that our airports are tout-free zones, and we ask that you just cease. We’re placing in all mandatory measures from our finish to guarantee that that stops as effectively, in fact, with the continued help of the Nationwide Safety Adviser and the Safety Council. So it’s additionally our accountability as Nigerians. You’ve heard me say it. You’ve heard the minister mentioned, if any company, together with mine, involves you inside the airport premises and needs to interact in such actions, it’s your accountability to inform them no. In the event that they ask you for funding, inform them no.
