The Federal Airports Authority of Nigeria has announced plans to revise tariffs for service providers operating within its network of airports.
This move, according to the authority, is necessary to sustain operations, given that 92 per cent of its income comes from aeronautical services, while only eight per cent is derived from non-aeronautical sources.
This was disclosed during a Stakeholders Engagement Forum hosted by FAAN’s Directorate of Commercial Business Development on Monday in Lagos.
At the event, Director of Commercial and Business Development, Adebola Agunbiade, explained that stakeholders would be duly informed ahead of any tariff adjustment to ensure adequate preparation.
“We have to find the means to review our tariff in such a way that it is not too much on you (service providers) but it’s also helping us to pay our bills,” Agunbiade said. “We have done it already, we will be putting out notices on it, but please rest assured that we will not be getting a review on tariff that probably has been done too recently. But we are reviewing our tariff, and we will also ensure that we notify you early enough so that you as businesses can plan towards it.”
She also spoke on FAAN’s move toward a digital, contactless payment system aimed at simplifying transactions across airport facilities.
“All payments will soon be made online using our cards. It is an airport card. You tap and go. It is a very seamless and straightforward process that will ease business and payment structure for all our payment systems,” she said.
Agunbiade highlighted the revenue potential of non-aeronautical streams, revealing that below-the-line platforms alone brought in N2 billion in revenue last year. “It is a big opportunity for investors, and people can leverage on this,” she added.
Regarding lease agreements, she acknowledged past challenges and emphasized that FAAN had revised the terms to ensure clarity and feasibility.
“We had a lot of issues around this, and I think it is mostly because most times when we give out these agreements, people don’t read them to see what the terms are. We have come up with different terms. So if anyone is coming for a renewal or for an application, you will see that some of the terms in the agreements have changed. We try our best to ensure that you will find terms that are doable. And they work,” she stated.
FAAN Managing Director, Olubunmi Kuku, also addressed security and infrastructure concerns.
She warned that licenses of unauthorized operators posing as car hire or Bureau de Change services would be withdrawn to curb touting activities.
“This is not the scene I want to see. We have got orders to take out those tankers. We will be taking drastic measures. We cannot just have businesses on the side of the road in a manner that is not organised. They will have to go. They are a security risk, and the scene is obnoxious for an airport environment,” Kuku said, referring to the tankers congesting Lagos Airport access roads.
She stressed the benefits of automation in driving efficiency and transparency across FAAN operations.
“Automation makes it easier for you to track your payment. We are going cashless and contactless payment. So it is easier and faster. People can use these cards for payment points across our terminals,” Kuku explained.
She noted that ongoing efforts to upgrade tollgate and parking infrastructure, aiming to bolster visibility, transparency, and accountability.
“All in a bid to make sure that there’s visibility, there’s transparency, and of course accountability for the funds that we earn for our passengers to understand that it’s going right back into the businesses,” she said.