FAAN Poised to Generate N70 Billion Revenue Annually

If all loopholes are closed and revenue systems automated, the Federal Airports Authority of Nigeria (FAAN) can increase its annual revenues from the present N45 billion to about N70 billion, THISDAY checks have revealed.

With the huge revenue generation, the agency, according to sources, can effectively and efficiently carry out major developmental projects without seeking funds from the federal government.

It should also be able to offset its fiscal liabilities, enhance welfare package for its workers as well as improve the facilities at all the airports under its management.

Sources close to the agency said currently, FAAN earns about N2 billion from aeronautical sources and N3.5 billion from non-aeronautical sources monthly from the Murtala Muhammed International Airport, Lagos. This amounts to N30 billion annually and N15 billion annually respectively from other airports in the country, which represents a total amount of N45 billion per annum.

This amount, a source told THISDAY can increase to N70 billion if strict measures are put in place to block all loopholes.

These measures include the automation of every process that generates revenues for the agency in all the airports under its management.

“First, FAAN has to capture the data of revenue potential which will determine the amount of revenues to expect; it will have to ensure that there is transparency, which means that every amount of money generated is captured; then it will have to streamline all its activities so that at a glance everyone will have the picture of what is generated”, an inside source told THISDAY.

The source said that FAAN has a burden of too many personnel, including a lot of hangers-on, who are workers who do not have definite responsibility but are paid monthly salary by the agency.

“There is also the challenge of inefficiency. Many people in FAAN abdicate their responsibility because duties were not tailored to particular individuals; there are too many people, so the human capacity is not optimised and they are not working in a sustainable friendly environment. Then there is this culture of lackadaisical disposition of those who work in government parastatals. They lack drive, which is obtained in private sector work environment,” the source noted.

On the non-aeronautical revenue sources, the source said FAAN should exploit the establishment of hospitality facilities like hotels, duty free shops and advertising.

“If you look at the Murtala Muhammed Domestic Airport (MMA2) it has been recording 24 per cent growth annually, so FAAN should have policy road map to grow its airports.

It has already optimised its aeronautical sources; it now has to be creative to boost its non-aeronautical revenue sources.

“Again, Nigeria is an import oriented nation, FAAN can exploit the revenue potential of cargo. It can also further develop the catering services; go into real estate because it has lots of land; so it can do land leasing. But it must have to adopt private sector driven business plan to achieve this and government should give the agency breathing space,” the source added.