Stakeholders in the aviation sector say closing the infrastructure gap at the nation’s airports will increase operational efficiency as well as boost national economy.
According to them, privatisation will reduce the need for public sector investment and allow airports to diversify services without the fear of government’s control and interference.
The concession programme of the government got a boost when the Minister of Aviation, Sen. Hadi Sirika received the Outline Business Case Certificate (OBC) of Compliance for the concession of Lagos, Abuja, Port Harcourt and Kano international airports, from the Infrastructure Concession Regulatory Commission (ICRC).
While receiving the certificates of compliance from the ICRC Director General, Mr Chidi Izuwah, in his office, Sirika said the certificates of compliance would enable the ministry seek approval from the Federal Executive Council for full business of concession to proceed.
“Besides, that will turn the airport terminals to its full potential in private hands as millions of dollars will be pumped into the airports.
“President Muhammadu Buhari had earlier approved the Aviation Sector Roadmap, part of which was airport terminal concession.
“I commend the Infrastructure Concession Regulatory Commission which in line with its mandate has guided the ministry to ensure compliance and value for money, transparency, equity and fairness, “Sirika said.
According to him, the full implementation of the airport terminal concession will create about 241,700 jobs.
Responding, ICRC Director-General, Mr Chidi Izuwah said the Federal Government through the Ministry of Aviation had adopted Public-Private Partnership PPP as the strategy to leverage on private sector participation and investment.
He said the aim was to upgrade and develop new terminal infrastructure at the four airports in a cost-effective and value -for- money manner.
Izuwah said the commission issued the ministry an OBC Compliance Certificate for the four international airports based on the commission`s review and findings.
“The Outline Business Case (OBC) Report for the concession of the Lagos, Abuja, Port Harcourt and Kano airport terminals under PPP arrangement was transmitted to the commission on June 1, 2020 for certification.
“In line with ICRC PPP pre-contract regulatory role, the commission has reviewed the OBCs. We have deduced OBC substantially satisfies requirement of ICRC (Establishment Etc.) Act, 2005 and National Policy on Public-Private Partnership (N4P), “ he said.
He said airport terminal concession was one of the critical projects under the aviation sector roadmap of the Federal Government and fitted well within the scope of the ministry’s strategic plan for the sector.
Izuwah commended the ministry and the Transaction Advisers on the achievements recorded so far.
According to him, the achievements are capable of yielding greater successes as the project enters the procurement stage.
He said that airports in Nigeria have huge potential, but are currently operating at a suboptimal level due to factors needed to be improved under the PPP programme.
He listed the factors as: urgent need for infrastructure investments and modernisation (runway maintenance, navigation aids as well as terminal facilities).
Others he said are relative low asset utilisation due to the limited opening hours of some airports, lack of terminal capacity at the airports due to inadequate gates, standing and check-in desks among others.
Izuwah listed other things to be done to include : preparation of an Information Memorandum (Info Memo) and Request for Qualification (RFQ) by the Transaction Adviser and Placement of RFQ invitation to interested bidders.
“Issuance of request for proposal to shortlisted firms, opening of data room and hosting of pre-bid conference; technical proposals evaluation and public financial bid opening and declaration of preferred and reserved bids.
“Negotiation and preparation of Full Business Case (FBC) and approval of FBC by the Federal Executive Council (FEC) and contract signing,“ he said.
Nevertheless, aviation unions at the Nnamdi Azikiwe International Airport, Abuja, recently kicked against the planned concession of the four airports.
The aviation unions: National Association of Aircraft Pilots and Engineers (NAAPE), Association of Nigeria Aviation Professionals (ANAP), National Union of Air Transport Employees (NUATE) and the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN), said the concession would lead to job losses.
Mr Ahmed Yusuf, Chairman of NUATE, alleged that the minister of aviation received the OBC certificate for concession of the four airports out of 22 airports in Nigeria during the lockdown.
“ It lacked transparency and the workers were not carried along. We totally reject the concession because it is not transparent.
“If the four viable airports are concessioned, the remaining 18 airports will die, because these four airports sustain the other airports. It is a disaster waiting to happen and definitely jobs will be lost.
“The Lagos airport alone can sustain the 22 airports so why the concession,” he said.
Yusuf said the unions suggested green field concession, where the concessionaire would acquire a virgin land, build, operate and transfer the airports which could create more jobs during and after construction as well as drive competition.
On his part, Mr Samuel Wuyep, the Abuja chapter Chairman of ATTSSAN, said the unions never consented to concession.
“ We opposed it, and we will continue to oppose it. Procedurally, there are certain steps to take.
“ We just went through the first step and the minister abandoned it and went to obtain a certificate from ICRC. There is no transparency in it,” he claimed.
In the same vein, the Nigeria Labour Congress (NLC), in a statement urged the Federal Government to refrain further discussions and arrangements to concession major airports in the country.
NLC President, Mr Ayuba Wabba, said that organised labour was not in support of plans by government to concession Nigeria’s major airports.
“It was with great alarm that we learnt of the renewed efforts by the Federal Government to concession Nigeria’s major airports.
“Nigerians may recall that the current concession drive of the present government did not start today.
“ It has been part of the neo-liberal predilection of successive governments in Nigeria.
“It stretched from the military era up till the current democratic dispensation to deregulate, concession, and privatise critical national assets to their cronies and friends,” Wabba added.
In spite opposition by organised labour, stakeholders insist that the concession of the airports would boost national economy.
They appealed to organised labour to support the action, as well as advised the government to engage organised labour to ensure smooth transition.
