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Airport Concession: No FAAN workers will be laid-off, FG assures

The Federal Government has allayed the fears of the Federal Airports Authority of Nigeria (FAAN) workers that none of its members would be laid off.

The assurance became imperative as concession of the major four international airports in the country are ongoing.

The Minister of Aviation, Sen. Hadi Sirika, gave the assurance during a virtual meeting on the concession update of the four major airports with aviation stakeholders in Lagos on Wednesday.

The four airports are the Mallam Aminu Kano International Airport, Murtala Muhammed International Airport, Port Harcourt International Airport and the Nnamdi Azikiwe International Airport.

Sirika said instead, more jobs would be created because most of the airports were short of staff and as such more hands would be engaged.

The minister informed industry stakeholders that there was no need to sell the country’s asset, but to concession them in a way that they would be operated to generate more revenue for the country, modernise the airports and create more jobs.

“We will not sell the assets that belong to over 200 million Nigerians and the future generation of this country.

“We are not going to sell because those that were sold were lost, so, we in government believe that we should hold those assets for the Nigerian people in trust.

“We must make those assets better to provide the service that is needed. So, we said rather than sell out rightly, we will concession.

“In other words, we would give it up to someone who would operate them and make them better.

“We will then get more money, the people will enjoy better services, the industry grows and after certain time, the airports will come back to us,”he said.

The minister further explained that the airport terminal buildings to be concessioned would generate its revenues from non-aeronautical resources.

Sirika said all other facilities at the airports and existing concessions outside the airport terminals will still be managed by FAAN.

He, therefore said that the concessionaire would sign service level agreements with FAAN and NAMA to ensure that airport operates efficiently, the service level agreement would cover the Runway, Taxiway, Security and Air Traffic Management.

The minister said the concessionaire would also provide the investment required to upgrade the existing terminals, took over the new terminals and maintain them over a period of time to be determined based on financial assessment of each transaction.

Sirika said the existing concessions within the terminals would be inherited by the concessionaire and would be allowed to run its course before any review.

He added that tariffs will be regulated in accordance with the procedures set in the concession agreement.

The minister said as regards the Passenger Service and Security Charges, the concessionaires and FAAN would share the charges which would be paid directly to FAAN by IATA.

On the service to be rendered by FAAN, Sirika said that the airport authority would be required to provide manpower through AVSEC for security of both the airside and landside.

He, however, said the concessionaire would be expected to provide and maintain landside equipment which would allow FAAN continue to provide and maintain airside security equipment.

Sirika stressed that the airports in the country were currently operating in a suboptimal environment that needed to be improved on with the private sector participation.

The minister said most of the airports were in urgent need of infrastructure investments, adding that modernisation required investments in runway maintenance, navigation aids as well as terminal facilities.

He said with the increasing population, private operator of the four main airports would operate the airports with an international standard and expand the facilities in accordance with traffic demand at each airports.

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