Why Airport Remodelling Failed
Although the federal government claimed there were no funds to continue the airport remodelling projects, there were indications that Stella Oduah’s successor as Minister of Aviation, Osita Chidoka, lacked the will to complete the projects. Chinedu Eze wr
Industry operators and other airport users are of the view that the worst legacy of the Goodluck Jonathan administration was its inability to complete the infrastructural transformation of the airports. For over 30 years the airport facilities under the management of the Federal Airports Authority of Nigeria (FAAN) were never rehabilitated. Most of the facilities have became very obsolete, an indication that succeeding governments failed woefully in their responsibilities.
Nigerians were therefore elated when in 2011, government started the airport facilities rehabilitation programme. Although there were sceptics who didn’t believe that the ambitious transformation of 22 airport terminals and establishment of fresh cargo terminals was realisable. Even when the work was underway, flurry of criticisms followed it. But the rapidity with which some of the projects were completed in recorded time left many industry observers stunned.
Despite the criticisms that trailed the project, many Nigerians agreed that change was taking place at the nation’s airports. However, those familiar with the inconsistency of Nigerian government still doubted the possibility that the remodelling project would be completed. Their doubt stemmed from hindsight; that over the years laudable projects started by government that would benefit majority of Nigerians were never completed. So when the former Minister of Aviation, now Senator Stella Oduah, was removed from office, those who predicted that the work would be terminated half way were proved right.
Within two years, Odua was able to totally rebuild the General Aviation Terminal (GAT) of the Murtala Muhammed International Airport, Lagos, the expansion of the E and D wings of the international terminal of the Lagos airport and the building of hajj facility and the VIP of the Nnamdi Azikiwe International Airport and the total rehabilitation of the hitherto international terminal of the airport.
During the period, government was able to rebuild the international terminal of the Mallam Aminu Kano Airport, the Yola terminal, the Sokoto airport facility, the Ilorin airport facility and the Makurdi airport terminal. At the same time, she started fresh cargo terminal at the strategic food belts of the country. Work was also completed at the Owerri, Enugu airport facilities, while the Calabar, Port Harcourt and other airports were still under rehabilitation before the avalanche of criticisms, as presidential election approached, prompting some people to describe the remodelling as mere paint work.
Excoriating those critical of the projects, the CEO of MedView Airline, Alhaji Muneer Bankole said Oduah changed the face of airport facilities in Nigeria and wondered what the airport infrastructure would have been without her contribution.
“Before the remodeling done by this past Minister we were using bucket to fetch water, is that an airport? Let’s give commendation to that woman, whether she did it half or bad way, she has changed the face of the airports in Nigeria. I am not being partisan; I am not a politician. Some people came to condemn what she did that the airport is leaking, it is another story. Somebody should have taken it from where she stopped and improve on it that is what is affecting us. You came and you abandoned what somebody did and you come with your own story,” Bankole said. Funding of the Project
Oduah divided the projects into three phases and was already working on the two phases before she was removed. According to FAAN, the former Minister had earmarked how the second and third phases of the projects would be funded.
But when she was removed and Dr Samuel Ortom, who is presently the Governor of Benue state was made supervisory Minister of Aviation, the complain that there was no money to complete the project became a major issue in the media. First, the Senate Committee on Aviation declared that N174 billion debts had been incurred on the projects and the Ministry of Aviation said there was no more money to continue the rehabilitation programme.
Unfortunately when a substantive Minister of Aviation, Osita Chidoka was appointed, many in the industry observed that he began to discredit the projects and also downplayed other things that were done by his predecessor like the Aviation Road Map, the Aerotropolis project and others.
THISDAY learnt that funding came from approval from Presidential priority projects on February 21, 2011 for the utilisation of the sum of $60 million in the Bilateral Air Service Agreement (BASA) fund. This was submitted to the National Assembly for appropriation to be supplemented by a further N14. 6 billion from the internally generated revenue (IGR) of FAAN.
At the same period the then Coordinating Minister of the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala conveyed the approval for the aviation sector for the procurement of critical infrastructure such as perimeter fencing, airfield lighting, water hydrant systems and fire fighting equipment as follows: N43 billion from the 2013 budget (as proposed); N25 billion from the BASA fund and N44 billion from sources to be identified by the Ministry of Aviation, totalling N112 billion respectively.
But the available funds, which had not been secured by the Ministry of Aviation included the balance of N175 billion Power and Aviation Intervention Find (PAIF) from which N75 billion was supposed to be allocated to the aviation sector that was still outstanding as at then.
Then there was the additional funding of N25 billion from BASA fund to be made available for urgent infrastructure upgrades and then the BASA fund had accrued to about N30 billion, which was not yet utilised.
Inside sources said that any succeeding minister that had the intention to complete the project would have continued to source the available funds for the project as projections indicate that automation would have boosted FAAN’s revenue by over 60 per cent as the system would block the loopholes through which workers short-changed the organisation. Discrediting the Project
Top FAAN officials who spoke to THISDAY on the condition of anonymity said that the remodelling project was a victim of Nigerian politics whereby a succeeding governor, minister or even permanent secretary fails to continue with the project left behind by his or her predecessor but instead started another project, which he or she would not complete before vacating the position. This they observed, has gives rise to numerous abandoned projects on the nation’s landscape. The Airport City Development/Aerotropolis
The Coordinator who worked under Oduah, Dr Daniel Tarka said the Aviation Transformation Agenda ushered in the Aviation Master plan that included the airport remodelling, security upgrades, human capacity development and enhanced revenues through technology applications.
Tarka said the evidence of what Oduah achieved “is clearly visible in all 22 airport locations, which became categorised into cargo, pilgrims terminals or international. Enugu International airport is an example, with four others: Lagos, Abuja, Port Harcourt and Kano which are the recipients of the Chinese Exim Bank Loans for new Terminals.”
“However the exit of Princess Stella Oduah through coordinated press campaigns by her detractors brought in a supervising Minister, Dr Samuel Ortom and subsequently, Osita Chidoka. Both mussed the momentum of the Aviation Master plan, and decided to reinvent the wheel by reviewing the policy and procedures that ushered in such massive transformation in under two years.
“They both failed to seize the potential of the plan: the National Carrier, the Perishable Cargo program, the Aerotropolis project and further infrastructural development on nonaviation related revenues,” Tarka said.
Also, another FAAN source who monitored the remodelling project told THISDAY that Oduah was able to embark on the project because she had multi-tasking ability and was able to source the funds to execute the project, which her successors failed to do. The official however excused Ortom, saying that he was not a substantial Minister of Aviation.
“The immediate past minister was a total disappointment. He got carried away. How do you discredit a system you benefitted from? He was paying the contractors handling the remodelling projects after he renegotiated the payments and was benefitting from it. He commissioned projects that were completed by his predecessor, he did not initiate any and he did not finish any. No Minister of Aviation has done what Oduah did. She gave our airport a better look,” the source said.
This allegation against Chidoka was dismissed by one of his aids. The aide said Chidoka only paid contractors when money was available, adding that there was nothing like renegotiated payment. But there was evidence he paid some contractors and none of the projects left by Oduah was completed under him.
The source also disclosed that before the Jonathan administration came to an end, the Aviation Ministry was able to secure from the National Executive Council an approval for the disbursement of N4 billion for perimeter fencing and the money was to be sourced from the security levy introduced by Oduah.
“Oduah already planned how she would complete the projects. She introduced security levy which has been accruing money and it is from that fund the perimeter fencing would be funded. Oduah was looking at revenue generation, so the airports were to raise more revenues from other ways which would be ploughed back for their development. I think that there are those who had worked in FAAN and in NCAA who will make sure you don’t succeed if you are not one of them. I think that was what happened to Oduah,” the official said. Aerotropolis
The source also wondered why Chidoka discredited the Aerotropolis project, describing aerotropolis as the modern concept for modern airport development.
“What is in vogue now is that countries build airport city to boost revenue and create jobs. This was what Oduah wanted to do. They are expanding the Frankfurt airport; the same with the airport in Atlanta where expansion is a rapid experience. About two years ago a new terminal, which they call concourse was opened. At the Atlanta airport they have planned to build the largest estate in the United States. Abu Dhabi is building an airport city and Ghana is quietly working towards an airport city. Also South Africa is building airport city and they want to link it to OR Tambo International Airport, Johannesburg,” the official said.
Last weekend the Permanent Secretary, Ministry of Aviation, Mrs. Binta Bello said it was due to lack of funds that the airport remodelling project was abandoned. Since it has become obvious that government cannot afford to build and maintain airports because of its lean resources, the right thing is to heed the advice that the airports should be given to concessionaires to manage.