The Federal Airports Authority of Nigeria (FAAN) has unveiled plans to raise tariffs for all service providers across its airports, aiming to strengthen its revenue base.
As part of its modernization efforts, the authority will also eliminate cash payments at all points of service, opting instead for a fully automated and contactless payment system.
FAAN revealed that 92% of its revenue currently comes from aeronautical sources, while just 8% is earned from non-aeronautical activities. This figure contrasts sharply with global trends, where non-aeronautical income makes up over 40% in many developed countries.
The agency described this transition as a vital step toward updating its operational structure and creating a more balanced revenue portfolio.
During the Directorate of Commercial and Development Stakeholders Engagement Forum held on Monday in Lagos, the Director of Commercial and Business Development at FAAN, Adebola 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.”
She further assured stakeholders that they would be informed ahead of time before any changes are enforced.
“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,” she added.
“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 said.
Agunbiade highlighted the need for revising lease agreements, noting, “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.”
She explained that FAAN, in collaboration with its legal team, has thoroughly reviewed the agreements.
“We’ve introduced new terms. So, when someone applies for a renewal or a new agreement, they’ll notice that some terms have been updated.
“We’ve done our best to make these terms practical and effective,” Agunbiade added.
The FAAN representative also announced a shift to an automated, contactless payment system, stating, “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 N2 billion from below-the-line platforms alone.
Agunbiade underscored the potential for investors, stating, “It is a big opportunity for investors, and people can leverage on this.”
She added that FAAN is focusing on implementing reward systems for its workforce.
FAAN’s Managing Director and CEO, Olubunmi Kuku, raised concerns about the high volume of calls and inquiries from service providers regarding payment renewals and applications.
She stressed the benefits of automation, saying, “Automation makes it easier for you to track your payment. We’re going cashless and contactless payment. So it is easier and faster. People can use these cards for payment points across our terminals.
“We have started the pilots in Lagos, we’re going to be rolling this out across other airports, and of course across all of our different lines.
“There are a lot of investments that have gone into our infrastructure upgrades and automation, specifically.
“We will be using ECR devices for all of the payments at the terminals.
“We’re also upgrading some of our parking and automating the tollgate facilities as well. All in a bid to make sure that there’s visibility, there’s transparency, and of course accountability for the funds that we earn for our passengers to understand that it’s going right back into the businesses.”
Kuku also issued a warning that the Federal Airports Authority of Nigeria (FAAN) would withdraw the licences of Bureau de Change operators and car hire service providers found using their roles at the airport as a cover for touting.
She addressed the ongoing efforts to ease traffic congestion around the Lagos airport by removing tankers stationed along the access roads.
“This is not the scene I want to see. We have received orders to take out those tankers. We will be taking drastic measures.”
Kuku emphasized the need for orderliness, stating, “We cannot just have businesses on the side of the road in a manner that is not organised. We will be taking very drastic actions.”
She further pointed out that many of the tankers parked around the airport do not belong there and pose risks.
“A lot of the tankers there do not operate in our environment. They will have to go. They are a security risk, and the scene is obnoxious for an airport environment,” Kuku stated.
Discover more from LN247
Subscribe to get the latest posts sent to your email.