FAAN remits N16.7bn to FAAC but seeks application of ICAO revenue generation standards

THE FEDERAL AIRPORTS AUTHORITY OF NIGERIA FAAN REMITTED N16.7 billion to the Federation Account Allocation Committee (FAAC) in 2021. The information comes on the heels of the authority asking the government to suspend the contributions from it in order to bridge the infrastructure deficit in the sector. FAAN also said the call for suspension of the contributions is in accordance with the International Civil Aviation Organisation (ICAO) standard, which says that all revenue generated must be ploughed back into infrastructure development of the sector. Making a presentation before the joint committees on aviation from the National Assembly, Rabiu Yadudu, managing director of FAAN, also said the authority has shifted its focus from the aeronautical sources of revenue to the non-aeronautical so as to further improve the revenue performance. “It is worthy to mention that even though FAAN does not have operating surplus, we had to remit N16.7 billion to the federation account as contribution to the Consolidated Revenue Fund as at the end of December 2021, for the year 2021 alone, in spite of the effect of the pandemic during this period. This has impacted on our ability to adequately meet up with our obligations. “The industry has an infrastructural deficit which has to be bridged. Therefore, government support in this area is needed. This can be achieved by suspending the contributions to the Federation Account in compliance with ICAO Standards and Recommended Practises (SARPs) Doc 9562 on Airport Generation, whichprovidesthat:-RevenueGenerated by Airports should be transparently reinvestedwhollyinoperatinganddeveloping Airport facilities,’’ he said. Speaking on non-aeronautical revenues, he said: “The authority has shifted its focus from the aeronautical sources of revenue to the non-aeronautical so as to further improve the revenue performance. Aggressive sensitization is going on with respect to areas at the airports where investors can come in. Specific areas where effort is being focused on include: Advertisement, car parks, Private Airport Terminal operators and Bi-Courtney (BOT) revenue sources. On advertisement, the authority is taking steps to terminate the non-performing concession agreements and engage new concessionaires. We hope to make significant progress before the end of second quarter.