The ministry described the achievement as a "notable milestone" in its steadfast commitment towards revitalising the nation's aviation sector
The Federal Executive Council (FEC) has approved the concession of the Nnamdi Azikiwe International Airport (NAIA), Abuja, and Mallam Aminu Kano International Airport (MAKIA), Kano, to the Corporacion American Airport Consortium.
This was disclosed in statement issued by the Special Assistant on Public Affairs to the Minister of Aviation, James Odaudu, on Thursday.
The council has also approved that the Federal Ministry of Aviation be renamed Ministry of Aviation and Aerospace with immediate effect.
"In alignment with the Aviation Roadmap, approved by Mr. President on 18th October 2016, the Ministry of Aviation and Aerospace is delighted to inform all stakeholders, both local and international, and the media, that the concession of the Nnamdi Azikiwe International Airport (NAIA), Abuja, and Mallam Aminu Kano International Airport (MAKIA), Kano has been approved by the Federal Executive Council," the statement said.
The ministry described the achievement as a "notable milestone" in its commitment towards revitalising the nation's aviation sector.
Preferred bidder
According to the statement, after a thorough and comprehensive evaluation process that commenced with the Request for Qualification (RFQ) advertised in both local and international media on 16 August 2021, and subsequent rigorous evaluation of technical and financial bids, coupled with due diligence visits conducted from 27 - 29 December 2022 and 9 - 10 January 2023, the Corporacion American Airport Consortium emerged as the preferred bidder.
It said the consortium, globally recognised for its superior technical expertise in the design, construction, management and operation of infrastructures, includes the Corporation American Airports, Mota Engil Africa, and Mota Engil Nigeria.
"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," the statement noted.
It added that the concession of NAIA and MAKIA will considerably enhance the operational efficiency and profitability of these airports, repositioning them to operate optimally and competitively.
According to the statement, the agreement is under a Public-Private Partnership arrangement, and will be effective for the duration of 20 years for NAIA and 30 years for MAKIA.
The statement noted further that the Corporacion American Airport Consortium is committed to making upfront payments of $7 million for NAIA and $1.5 million for MAKIA.
During the concession period, it said the total projected nominal revenues accruable from the combined Concession of NAIA and MAKIA exceed $4 billion.
"Over 70 per cent 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 said.
Reacting to the approval, which came the same day the Aviation ministry signed a Memorandum Of Understanding (MoU) for the commencement of the African Aviation and Aerospace University (AAAU), Minister of Aviation and Aerospace, Hadi Sirika, described the period as "momentous for Nigeria's aviation industry."
He said the partnership with the Corporacion American Airport Consortium underscores the Administration's dedication to improving the standards of the nation's airports, by providing world-class services to all travellers and generating considerable economic benefits for the country.
"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 minister was quoted as saying.
The statement noted that the new nomenclature of the ministry is in line with the nature of the sector, being under the exclusive management and regulation of the Federal Government.
Concerns
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Meanwhile, an aviation expert expressed concerns about the concession of major airports in the country.
The President/Chief Executive Officer of Top Brass Aviation, Roland Iyayi, who is also a former Managing Director of the Nigerian Airspace Management Agency (NAMA), agrees that airports would need to be concessioned but that the mode of conversion needs to be reviewed.
He said experts had advocated for cluster concessioning because of the viability of some of the major airports in the country.
Mr Iyayi explained that monies from these airports are used to subsidise all the other airports in the country and that there could be operational issues as the viable airports are being concessioned.
However, he said if the government had done a cluster concession of airports in the different geopolitical zones in the country, it would immediately help to address the concerns of how the government intends to sustain and fund the airport systems.
"But that is not the case. We obstructed some of these things because we felt it will not help the industry in the longer term," Mr Iyayi told PREMIUM TIMES in an interview.
