The Managing Director of the Federal Airports Authority of Nigeria Olubunmi Kuku, has indicated that the N23.1 billion earmarked for rebuilding and repairing airport infrastructure across the country is severely insufficient.
Kuku revealed this during a televised interview on Tuesday.
Airports, terminal areas, landsides, and airsides are among the locations, according to her, that urgently need renovations, and the funds allotted might not be sufficient.
Kuku emphasized the importance of the aviation industry and the need for significant capital expenditure, particularly in airports.
”When you refer to N23.1 billion or N23 billion, it may not actually scratch the surface if you look at where we are in terms of infrastructure development and upgrades. Yes, we do have some money earmarked for capital-intensive projects this year, and maybe slightly more.
“What I do want to say is that the Federal Government through FAAN actually has 22 airports under our domain which we manage.”
She clarified that in addition to providing subsidies for the remaining 19 airports, the authorities will also assist some of the newly developed airports.
We also have about six or seven airports that are either owned by state governments or private individuals or entities which we also support with either aviation security or fire and rescue services.
“We have a number of states in the north as well as in the south-west that are coming up with new airports.
“I would say that based on the stats today, only three of the 22 airports are actually profitable and contribute largely to the sustenance of the airport companies that we run.
“I would also say that we are actually cross-subsidising the other 19 airports today and in most instances, we will substitute or cross-subsidise for some of the airports that are coming on board as well.”
Kuku mentioned that FAAN allocates 50 per cent of its revenue to the federal coffers, which presents a significant challenge.
She noted that the authority is currently in talks with different branches of government to seek relief.
She explained that passenger traffic is influenced more by Gross Domestic Product growth and economic activities than by the construction of new airports.
