FAAN Hikes Tariffs At Airports, Laments 8% Revenue From Non-aeronautical Sources

The Federal Airports Authority of Nigeria (FAAN) has announced plans to increase the tariffs of all service providers across its airports as part of efforts to meet its objectives and responsibilities, .

The authority also lamented that, while 92 per cent of its revenue comes from aeronautical sources, only eight per cent is generated from non-aeronautical sources, saying, other developed countries in the world generate over 40 per cent from non-aeronautical sources.

Speaking during the Directorate of Commercial and Business Development (DCBD) Stakeholders Engagement Forum on Monday in Lagos, the director, commercial and business development, FAAN, Adebola Joy Agunbiade said, the authority would inform her customers early enough about the tariff increase to plan towards it.

We have to find the means to review our tariff in such a way that it’s not too much on you but it’s also helping us to pay our bills, he said. She assured that FAAN would notify service providers early enough before implementing the tariff increase.

“We have done it already, we will be putting out notices on it, but please rest assured that we will not be getting a review on a tariff that probably has been done too recently,” Agunbiade added.
She continued, ‘‘But we are reviewing our tariff, and we will also ensure that we notify you early enough so that you, as businesses, can plan towards it.’’

Agunbiade emphasised the importance of lease agreement restructuring, stating that , “We’ve had a lot of issues around this, and I think it’s mostly because most times when we give out these agreements, people don’t read them to see what the terms are.”

She said, FAAN has worked on the agreements with its legal team and has done a thorough review of the agreements.

“We’ve come up with different terms. So if anyone is coming for a renewal or an application, you will see that some of the terms in the agreements have changed. And this will also, we try our best to ensure that you will find it doable,” she explained.

The FAAN official also mentioned that FAAN would transition to an automated and contactless payment system.

“All payments will soon be made online using our cards. It is an airport card. You tap and go. It is a very seamless and straightforward process that will ease the business and payment structure for all our payment systems.”

“We have above-the-line and below-the-line revenue-generating platforms. Last year, we realised 2 billion naira from below-the-line platforms alone. It is a big opportunity for investors, and people can leverage on this,” Agunbiade disclosed. She also said, FAAN is investing in reward systems for its staff.

Also speaking, FAAN’s managing director, Olubunmi Kuku, expressed concerns over the number of calls and inquiries from service providers on payment renewals and applications.

She highlighted the importance of automation, stating that, “Automation makes it easier for you to track your payment. We’re going cashless and contactless payment. So it is easier and faster. People can use these cards for payment points across our terminals.

“We have started the pilots in Lagos, we’re going to be rolling this out across other airports and of course across all of our different lines. There are a lot of investments that have gone into our infrastructure upgrades and automation specifically. We will be using ECR devices for all of the payments at the terminals

“We’re also upgrading some of our parking and automating the tollgate facilities as well. All in a bid to make sure that there’s visibility, there’s transparency, and of course accountability for the funds that we earn for our passengers to understand that it’s going right back into the businesses.”

Kuku also warned that FAAN would revoke the licenses of car hire service providers and Bureau de Change operators who hide under their duties at the airport to engage in touting activities.

She spoke on efforts to decongest the Lagos airport access roads by removing the tankers parked on the roads.

“This is not the scene I want to see. We have got parked orders to take out those tankers. We will be taking drastic measures. We cannot just have businesses on the side of the road in a manner that is organised.. We will be taking very drastic actions. A lot of the tankers there do not operate in our environment. They will have to go. They are a security risk, and the scene is obnoxious for an airport environment,” Kuku said.