In a bid to bridge some of its infrastructural gap, the Federal Airports Authority of Nigeria (FAAN) has asked to discontinue the 25 per cent revenue contribution it makes to the federation account.
The Managing Director of the agency, Captain Rabiu Yadudu, made the appeal yesterday when the Senate Committee on Aviation came for their oversight function and he said that if the 25 per cent contribution ends, it will ensure development if revenue generated from the sector is ploughed back.
This was even as he asserted that revenues from only two airports; the Murtala Muhammed International Airport (MMIA) Lagos and the Nnamdi Azikiwe International Airport (NAIA) are sustaining other airports in the country.
He also highlighted the global economic project that has affected airline operators causing them to lessen fleet, frequencies or totally withdraw operations thereby affecting the organisation’s sales technology.
Captain Yadudu further decried the nevertheless rising running and preservation cost of the new terminals and present ones because of inflation and the devaluation of the Naira however harassed that FAAN is tweaking its plans to make other airports that aren't breaking even to perform. He also said the airport managers have launched into an competitive debt recuperation power whilst it has introduced a pay as you Go device and has also started out cashless coverage among other loophole blockage regions. Yadudu decried debt of airlines to FAAN in which he said a specific airline owes N13 billion for offerings rendered and unpaid for.
“On the capacity and contribution of airports to sales technology, it is the MMIA and Abuja that particularly helps other airports. The industry is still having infrastructural hole to stabilise, therefore, government’s support in stabilising the industry is wanted. This may be completed by suspending the contributions to the Federation Account in compliance with ICAO requirements and endorsed practices (SARPs) Doc 9562 on airport technology which provides that: Revenue generated by using the airport have to be transparently re-invested thoroughly in working and growing airport facilities,” he said. Reacting to the FAAN boss’s call for exemption from contribution into the federation account, Chairman Senate Committee on Aviation, Senator Smart Adeyemi, said the idea become commendable although it stays a constitutional problem requiring a assessment to actualise.
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