FG Considers Airports Concessions, Says Many Operating On Losses

The minister for Aviation and Aerospace Development, Festus Keyamo, said that many of the airports in the country are operating at a loss.

Speaking against the backdrop of a report that the Ministry granted lengthy concession period for Enugu International Airport, the spokesman of the minister, Tunde Moshood, said many of the airports in Nigeria have to be subsidised monthly by the government, thereby, reinforcing the need for concessions.

The minister who denied claims of a lengthy concession period for Enugu International Airport, acknowledged that the government was considering concessions and had received proposals from various interested companies, no conclusion had been reached.

He said, “Whilst it is true that the federal government is considering proposals for the concession of five major airports, this is a proactive measure to ensure these vital facilities can meet and maintain international standards, given the increasing financial demands of their operations. Many of our airports are presently running at a loss, so they have to be subsidised each month by the federal government. It is noteworthy that this initiative to concession started under previous administrations.

“At this stage, prospective concessionaires have indeed submitted various proposals, including different durations for the concessions. It is important to emphasise that the Ministry of Aviation and Aerospace Development has not established any fixed duration. All submitted proposals are currently undergoing thorough evaluation and will eventually be reviewed by the ICRC before being presented to the minister for onward conveyance to FEC for approval. We can confirm that this review process has not been concluded.

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However, for the sake of transparency, the minister of Aviation and Aerospace Development, Festus Keyamo, directed some months ago that the Aviation Labour Unions be included as part of the negotiating teams.

“Therefore, we must state unequivocally that the information suggesting a predetermined concession duration is false, unfounded, and intended to cause unwarranted disaffection and mistrust in this process by those with entrenched interests.”

While assuring the public of a transparent concession process, aviation unions have accused the Ministry of conducting the concession process “in the dark.”

Moshood further stated: “With his training and track record, the minister will not allow anything untoward to happen under his watch. He has so far run the Ministry in a transparent manner and will not fall into the same mistakes of the past. We will ensure that all decisions are made in the best interests of the nation and the aviation sector.”

Recall that Enugu Airport came under media scrutiny barely 48 hours ago after Air Peace airline suspended its flight operations to the airport due to infrastructural defects.

This suspension of flight services prompted the Federal Airports Authority of Nigeria to immediately shut the airport, stating that it would embark on emergency runway rehabilitation.