The Federal Airports Authority of Nigeria (FAAN) on Tuesday disclosed it remitted two billion naira into the Consolidated Revenue Fund (CRF) account between January to September 2020
The Managing Director of FAAN, Capt. Rabiu Yadudu made the disclosure during the House of Representatives Committee on Aviation tour to the authority on Tuesday in Lagos.
He said: As at Sept. 30, FAAN generated a total of N30.08 billion during the nine months target set out of which N27.97 billion was actual collected.
“From this amount, N17.61 billion was from Aeronautical source of revenue while N5.78 billion was from non-aeronautical sources and N5.24 billion was recovered from outstanding debts owed.
”From January to September, the revenue target of Aeronautical source was N38.99 billion and actual generation totalled N17.82 billion out of which N17. 61 billion is actual collected.
“This gives a performance of 98.81 per cent on revenue collected over generated revenue.
“Therefore, FAAN is now shifting focus from Aeronautical sources of revenue to non-aeronautical, this is because FAAN is presently operating at only about 30 percent of its pre-COVID capacity.
“Also, the authority has set up a revenue task force to aggressively drive revenue, follow up on outstanding debts owed and explore all possible investment opportunities.”
Yadudu disclosed further the revenues and expenses for the year 2020 that FAAN presently do not have any operating surplus.
The managing director appealed to the committee to expedite action on legislations that will help the agency fastrack its operations across the country’s airports.
According to him, the Authority is also mindful of the National Assembly committee on Aviation in ensuring that FAAN is exempted from payment of operating surplus to the Federal government.
Yadudu explained that exception of FAAN will guarantee that the revenue generated by the airport is transparently reinvested wholly in operating and developing airports facilities.
He said this was in compliance with International Civil Aviation Organisation (ICAO) standards and recommended practices on airport generated revenue.
The managing director also called on the lawmakers to give accelerated attention to the agency’s budget.
“The 2021 IGR budget was submitted to the committee for consideration, we believe that early consideration and passage will enable achieve better in 2021.
“Nigeria is expected to be a hub in West/Central Africa sub-region and this can only be met through more funding for provision of modern infrastructure and technology, this we believe can only be achieved with your support
“The aviation agencies will urgently need intervention funds from the federal government to address infrastructural gaps and position the industry for better service delivery.
“This will also improve the contribution to the national economy, on this note, we seek your assistance in this area and the other aforementioned areas,” he said.
The FAAN MD dispelled rumours that it had been paying half salaries to its workers.
He, however, acknowledged that there was challenges in the prompt payments, but affirmed that nobody receives half salary in FAAN, adding that half salary mean no salary.
