Business Summit holds first drone expo

AMONG the Federal Government’s 22 airports in the country, in terms of revenue generation between January and December 2020, the Murtala Muhammed Airport has again demonstrated its leading role as the economic backbone to other airports as it generated 58 per cent of the total amount generated recorded last year followed by the Nnamdi Azikwe Airport, Abuja which recorded 21 per cent.

During the past year, while Port Harcourt airport generated four per cent with Malam Aminu Kano airport making four per cent, other airports put together generated 13 per cent.

This is just as it has been revealed that the new international airport terminals across the country, when completed apart from Abuja and Port-Harcourt already commissioned would rake in 15 million more passengers and thus increase revenue for the airports.

Delivering a paper with the theme: ‘Improving Airport Non-Aeronautical Revenue Stream’ at the opening of the Business Summit on Cargo and Aero logistics and Drone Expo at the Lagos airport, Director, Commercial and Business Development at the Federal Airports Authority of Nigeria (FAAN), Mr Sadiku Rafindadi who dropped the hint, said the new terminals when completed will open up potentials for tourism, businesses and effective use of Bilateral Air Service Agreements (BASA) within partnering countries.

“The terminals shall provide more space to cater to passenger preference, exciting retail facilities, Duty free shops, food and beverage outlets, advertising, car parking etc,” Rafindadi declared.

Speaking on the strong revenue prowess of the airports, Rafindadi said: “Nigerian airports have enormous potential for high gross earnings if well harnessed, each airport have their peculiarity in terms of tourism, agriculture, mining and aerotropolis to better improve their viability.”

To shore up its revenue generation, he said FAAN was looking at increasing the share of non-aeronautical activities from below 30 per cent to 40 per cent, adding that this would be done, “by focusing on investments in airport infrastructures and technology solutions to drive cost optimisation, creating enabling environment and improving none aeronautical revenue streams”.

The FAAN Business Director also disclosed that, because about N576 billion ($1.2 billion) is lost to medical tourism yearly in Nigeria, in addition to its airport clinics being commercialised, FAAN is designating some land area at the airport to harness non- aeronautical opportunity.

Among the top contributors to non-aeronautical revenues he listed include car parking and access gate, advertising among others.

“Nigerian airports have the ability to grow their own aero revenue considering the geographical location of the country as a hub, the available land, climate, competition and consumer demand (population).

“With the vast land available at our airports for business, FAAN is open to Foreign Direct Investment (FDI) and partnership with corporate organisations on different Public Private Partnership (PPP) business models through Build, Operate and Transfer (BOT), Joint Ventures and Concessions to explore opportunities for improved none aeronatical revenue streams.”

Rafindadi also hinted of an ongoing effort by the FAAN to partner state governments to promote investments in airport infrastructural and cargo terminals and facilities to enhance air cargo operations.

According to the FAAN director partnership will be geared towards improving on its revenue generation in all fronts and the Ibom airport, saying Owerri cargo terminal and the newly commissioned Anambra cargo terminal were top on the list.

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