Many Airports In Nigeria Operating At A Loss- Keyamo
The Minister for Aviation and Aerospace Development, Festus Keyamo, on Monday highlighted the financial burden of maintaining airports in the country, stating that many operate at a loss and require monthly subsidies from the government a situation that strengthens the argument for concession.
This is just as he refuted a recent media report (Not THE WHISTLER)suggesting that the Federal Government had finalised a long-term concession arrangement for Enugu International Airport.
Although the government is currently exploring the concession of several airports and has received multiple proposals from interested parties, Keyamo clarified that no definitive agreement has been reached.
In a statement released on Monday and signed by the Minister’s Special Adviser on Media and Communications, Tunde Moshood, the report was dismissed as “utterly baseless and untrue.”
Enugu Airport has been in the spotlight in recent days following the suspension of flight operations to the facility by Air Peace airline, citing infrastructural challenges.
In response, the Federal Airports Authority of Nigeria (FAAN) promptly shut down the airport, announcing emergency rehabilitation of the runway.
He said, “Whilst it is true that the Federal Government is considering proposals for the concession of five major airports, this is a proactive measure to ensure these vital facilities can meet and maintain international standards, given the increasing financial demands of their operations.”
“Many of our airports are presently running at a loss, so they have to be subsidised each month by the Federal Government. It is noteworthy that this initiative to concession started under previous administrations,” the statement reads in part.
“At this stage, prospective concessionaires have indeed submitted various proposals, including different durations for the concessions. It is important to emphasise that the Ministry of Aviation and Aerospace Development has not established any fixed duration.”
“All submitted proposals are currently undergoing thorough evaluation and will eventually be reviewed by the ICRC before being presented to the Minister for onward conveyance to FEC for approval. We can confirm that this review process has not been concluded.”
“However, for the sake of transparency, the Honourable Minister of Aviation and Aerospace Development, Festus Keyamo SAN, directed some months ago that the Aviation Labour Unions be included as part of the negotiating teams.”
“Therefore, we must state unequivocally that the information suggesting a predetermined concession duration is false, unfounded, and intended to cause unwarranted disaffection and mistrust in this process by those with entrenched interests.”
Amid calls for transparency in the process, some aviation unions have accused the Ministry of proceeding with the concession behind closed doors.
However, Moshood reaffirmed the Minister’s commitment to transparency, saying, “With his training and track record, the Minister will not allow anything untoward to happen under his watch.
“He has so far run the Ministry in a transparent manner and will not fall into the same mistakes of the past. We will ensure that all decisions are made in the best interests of the nation and the aviation sector.”
Many Airports In Nigeria Operating At A Loss- Keyamo is first published on The Whistler Newspaper
