By Aondowase Agabi
The Federal Government has concessioned the Nnamdi Azikiwe International Airport for $7 million ( about N3,228,400,000 at current CBN exchange rate of N461.2/$1) for a period of 20 years.
The FG also concessioned the Mallam Aminu Kano International Airport (MAKIA), Kano for 30 years at N1.5 million about N691,800,000.
Whilst the concession period lasts, the FG projects to make $4bn (about N1.844trn) in remitted revenues.
Recall the FG had acquired $500 million loan from China EXIM Bank to build brand new terminals at the Abuja, Enugu, Kano, Lagos and Port Harcourt International Airports. The FG plans to also concession Port Harcourt International Airport and the Murtala International Airport, Lagos. It’s not clear how much all the concessions would amount to but based on the $8.5 million that Abuja and Kano where concessioned, the $500 million would not be raised from the concessions.
Dr James Odaudu, the Special Assistant on Public Affairs to the Minister of Aviation said in a statement that the Federal Executive Council has approved the deal.
Also recall Aviation Unions’ had kicked against the planned concession of the airports.
The stated indicated that the achievement signifies a notable milestone in our steadfast commitment towards revitalizing the nation’s aviation sector.
Dr. Odaudu explained that: “Following a thorough and comprehensive evaluation process that commenced with the Request for Qualification (RFQ) advertised in local and international media on 16th August 2021, and subsequent rigorous evaluation of technical and financial bids, coupled with due diligence visits conducted from 27th – 29th December 2022 and 9th – 10th January 2023, the Corporacion American Airport Consortium has emerged as the preferred bidder.”
“The consortium, composed of The Corporation American Airports, Mota Engil Africa, and Mota Engil Nigeria, is globally recognized for its superior technical expertise in the design, construction, management, and operation of infrastructure” he said.
The Corporation American Airports, a New York Stock Exchange (NYSE) listed airport operator, has presence across three continents, managing 53 airports in six countries and serving approximately 82.4 million passengers in 2019.
According to the FG the concession of NAIA and MAKIA will considerably enhance the operational efficiency and profitability of these airports, repositioning them to operate optimally and competitively.
“In addition, the Corporacion American Airport Consortium is committed to making upfront payments of USD 7 million for NAIA and USD 1.5 million for MAKIA. During the concession period, total projected nominal revenues accruable from the combined Concession of NAIA and MAKIA exceed $4 billion United States Dollars. Over 70% of these projected revenues will be payable to the Federal Airports Authority of Nigeria (FAAN), thereby generating additional revenue sources for the Federal Government” the statement indicated.
Reacting to the approval, Senator Hadi Sirika said the period is momentous for Nigeria’s aviation industry.
The partnership with the Corporacion American Airport Consortium, he said, underscores the Administration’s dedication to improving the standards of the nation’s airports, providing world-class services to all travellers and generating considerable economic benefits for the country.
According to him, the concession will herald a new era of excellence in Nigeria’s aviation industry, saying that he eagerly anticipates a successful partnership with the Corporacion American Airport Consortium.
The concession is in line with the concession roadmapt.
The Aviation Roadmap, approved by Mr. President on 18th October 2016,
In a related development, the Federal Executive Council also approved the change of nomenclature of the Federal Ministry of Aviation to the Ministry of Aviation and Aerospace with immediate effect.
The new nomenclature is in line with the nature of the sector, being under the exclusive management and regulation of the Federal Government.