Most Nigerian Airports Not Profitable – Aviation Minister

Minister of aviation and aerospace development, Festus Keyamo has reiterated that the federal government is spending revenue generated from profitable airports to sustain several airports operating at a loss across the country.

Keyamo said the development had made private sector participation necessary in the management of some airports to improve efficiency, attract investment and unlock their economic potential.

He explained that while some major airports generate substantial revenue, the federal government spends a significant portion of the proceeds on maintaining less profitable airports.

According to him, “The reasoning behind it is that some of our airports are being run at a loss. We should say it the way it is. The managing director of FAAN is here to attest to that.

“To lay it bare before you, we make so much money from some of our primary airports, so much money from our major gateways, and then most of those profits are ploughed into running some of the other airports that are run at a loss.”

Keyamo noted that airport operations required substantial financial commitments, including personnel costs, power generation and other operational expenses, adding that the government lacked sufficient resources to maximise the commercial opportunities available at many airports.

According to him, the non-aeronautical components of airports, including commercial facilities and other revenue-generating activities, have enormous potential that private investors could help develop.

“If you know what it means to run an airport from morning to evening, you have to pay personnel, you have to run diesel generators, you have to do so much. And government is also very constrained for funds to even expand the use of these airports, especially the non-aeronautical parts,” he added.