Leadership (Abuja)

25 January 2013

Nigeria: Concession Agreement - We Can't Be Blackmailed - FAAN

The Federal Airports Authority of Nigeria (FAAN), yesterday, said that no amount of blackmail would deter it from executing its plan on the nation's airports. This was just as it said that it was constrained to make further clarifications on the concession agreement following deliberate attempts to blackmail the Authority.

A statement issued by its General Manager, Corporate Communication, Yabuku Dati, it expressed disappointment that AIC Limited, in an unprecedented act of brigandage by a private investor on government property, forcefully took possession of part of MMA's land with the help of armed policemen and hired thugs thereby causing a security breach at the airport.

It noted that there had been uninformed write-ups in some sections of the media accusing FAAN of being in breach of a concession agreement in 1998, between the Authority and AIC Limited, for the construction of a five star hotel at the airport.

"We wish to inform the public that, contrary to claims by AIC, the company has no court order authorising it to take possession of any portion of land at MMA because there was no dispute over land between FAAN and AIC Ltd.

"The case between the parties went into arbitration, which concluded that FAAN should pay a compensation of $74 million to AIC for depriving it of 35 years revenue as implied in the concession agreement. FAAN has however, appealed against the judgment of that arbitration and the case is yet to be determined," it said.

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