Airport Service Providers To Pay More As FAAN Restructures Payment

Airport service providers across Nigeria will face new charges as the Federal Airports Authority of Nigeria (FAAN) has announced plans to raise tariffs for all service providers and eliminate cash transactions at its facilities.

FAAN sees the move as part of a broader strategy to modernise operations and boost revenue.

The Director, Commercial and Business Development, FAAN, Adebola Agunbiade, disclosed the plans on Monday at the Directorate of Commercial and Development Stakeholders Engagement Forum.

Agunbiade, said, “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.”

Agunbiade disclosed that 92 per cent of FAAN’s current income comes from aeronautical sources—far below global benchmarks where non-aeronautical revenue plays a significantly larger role.

She said only eight per cent of its income comes from non-aeronautical revenue sources.

The FAAN executive said, “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.

“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.”

She acknowledged recurring challenges surrounding lease agreements with service providers, attributing many of the issues to a lack of awareness or understanding of contract terms.

According to her, many lessees fail to thoroughly review the terms of their agreements, which often leads to disputes or misalignment of expectations.

Agunbiade said, “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.

“We’ve come up with different terms. So, if anyone is coming for a renewal or for 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 in terms of. And they work.”

The FAAN official also highlighted the agency’s plan to transition to a fully automated and contactless payment system across all its airports.

She said the initiative is aimed at enhancing efficiency, transparency, and ease of doing business for both service providers and passengers.

Agunbiade added, “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 N2bn from below-the-line platforms alone. It is a big opportunity for investors, and people can leverage on this.”

Airport Service Providers To Pay More As FAAN Restructures Payment is first published on The Whistler Newspaper