FAAN MD Opposes Aviation Banks, Backs Specialised Financing Desks

The managing director of the Federal Airports Authority of Nigeria (FAAN), Olubunmi Kuku, has opposed the establishment of dedicated aviation banks, advocating instead for specialised aviation desks within existing commercial and development finance institutions.

Kuku made the position known during a panel session on “Strategic Direction on Aviation Financing and Infrastructure Development” at the African Air Transport Convention and Expo 2026, held in Lomé, Togo.

According to her, existing financial institutions should be strengthened to better understand the aviation ecosystem and provide the technical expertise required to support viable projects in the sector.

“I have heard quite a lot of talk from different people around setting up different financing institutions. I strongly do not support that,” she said.

“I would rather that the existing financing institutions set up specialised desks to understand the aviation environment and also provide support, where possible, through project preparation facilities and technical capabilities for relevant stakeholders.”

The FAAN chief noted that such arrangements would enable financial institutions to gain a deeper understanding of aviation projects, thereby improving the quality and bankability of proposals submitted for financing.

She stressed that collaboration between financiers and project promoters was essential to ensuring successful infrastructure delivery across the continent.

Kuku further called for greater clarity on available financing instruments and stronger regional commitment towards delivering priority aviation projects, particularly those aimed at enhancing connectivity across Africa.

She urged governments, private investors and development finance institutions to prioritise regional infrastructure projects, saying improved connectivity remains critical to unlocking the continent’s economic potential.

The FAAN managing director also advocated establishing national aviation delivery teams to coordinate infrastructure investments across multiple sectors, including transportation, security, and public administration.

According to her, such teams would foster collaboration among stakeholders, facilitate long-term planning and ensure continuity in the execution of strategic aviation projects.

Kuku emphasised that infrastructure projects presented for financing must be bankable, with promoters taking into account the entire value chain, while financiers should provide clear information on available funding options.

She cited FAAN’s ongoing rail connectivity project linking Lagos’ Red Line to airport terminals as an example of a project that could benefit from co-financing arrangements due to its potential revenue streams.

“Those conversations need to happen early, and regional priority projects really need to be put at the top of the financing scale,” she added.