The Federal Airports Authority Of Nigeria (FAAN), has increased Passenger Service Charge (PSC) from N1,000 to N2,000 which commences September 1, 2020.
Also, FAAN said if the federal government’s planned 40 per cent deduction takes effect from 2021, the organisation will be having a shortfall of over N160 billion, adding that the increase of PSC by 100% will enable it carry out effective maintenance of the airport services in line with the COVID-19 protocols.
The managing director of FAAN, Capt Rabiu Yadudu, who disclosed this during a press conference yesterday in Abuja, added that service charge has not been increased since 2011.
“FAAN has not increased Passenger Service Charge (PSC) since 2011, despite all the huge capital investments at our airports. The current PSC charge of N1, 000 is no longer realistic as it does not correlate with realities of cost related inflation rate which the CBN has put at 12.82 per cent.
“Besides, FAAN, until late 2019 was collecting the naira equivalent of PSC at an official rate of N305.50 – N344.38 to a dollar when airlines were collecting at subsisting market rate of about N362 to a dollar.
“It should be noted that ICAO’s recommendation in Doc. 9562 stipulates that revenue generated by airports be transparently re-invested wholly in operating and developing airport facilities,” Yadudu said while giving reason for PSC increase.
“It is also worthy of note that the federal government is increasing its direct deduction from FAAN to 40% from 2021. With such deduction, the Authority will have a shortfall of over N160 billion on overhead cost. The Authority is however engaging the federal government to exempt her from this deduction,” he said.
He urged airport users to comply with the COVID-19 protocols while traveling.