In a major policy shift, the federal government has put an end to the long-standing practice of allowing VIPs to access airports and use facilities for free through complimentary e-tags and stickers.
Minister of aviation and aerospace development, Festus Keyamo, announced the change to State House correspondents on Tuesday after the Federal Executive Council meeting presided over by President Bola Tinubu at the Presidential Villa, Abuja.
Keyamo said the previous exemptions represented an 82 percent loss in potential revenue from the e-tag system meant to recover costs for airport services and infrastructure maintenance.
He provided the example of one airport gate that should generate N250-N260 million monthly but was returning less than N100 million due to the exemptions.
The minister argued that it was unacceptable for wealthy Nigerians to receive free passage while ordinary citizens pay full fees, saying it is inconceivable that in Nigeria it is Very Important Personalities (VIPs) that do not pay for services while the poor pay.
He said, "The first approval that we sought was to obtain the respect of mandatory payments of access fees by all visitors at our federal airport tollgates nationwide; no more exemption.
"When we came to office, we met a tradition where at the end of the year, all manners of VIPs would approach us for what they call complimentary e-tags or complimentary stickers whereby you see them coming into our airports nationwide, and they don't pay the access fees; they don't pay for parking; they don't pay for essential services at airports, and they are VIPs. And I told myself and my team, not on my watch. It will not happen. If this tradition has been existing for years, I will not allow it to happen, because it is inconceivable that in our country it is the VIPs that don't pay for services; it is the poor men that pay for services.
"The VIPs are supposed to have money to pay for services but they compel poor men to pay for services, and I said no. So I got my team together; I said we need the backing of Council (FEC) to compel everybody.
"In fact, guess what? Our memo says 'with the exception of the president and the vice president', and the president overruled me and said he and the vice president will pay; he said everybody (will pay).
"Let me give you the shocking statistics: the negative figure that we get at the end of the day from the complimentary e-tags is 82 percent in the negative."
Federal Gov't Targets More Revenue, Ends Free Airport Services For VIPsAccording to him, instead of earning 100 percent from printing the e-tags, only 18 percent is sold, with the rest lost to complimentary tags.
"That is how bad it is - 18 percent; and 82 percent of these e tags are given out free of charge to VIPs. So imagine the loss at my sector and I ask myself: which other sector will I go to that they give me anything free?
Moving forward, he said the administration will issue a system-wide circular requiring all VIPs - including those in the judiciary, legislature, executive branches and military - to purchase yearly e-tags for their personnel rather than permanent free access.
Keyamo said this policy will improve revenue for upgrading decaying airport infrastructure.
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The general secretary, Aviation Round Table Initiative (ARTI), Olumide Ohunayo, applauded President Tinubu for the bold initiative, saying it will bolster the revenue of the Federal Airports Authority of Nigeria (FAAN).
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Ohunayo, however, urged the government to ensure that leakages are plugged and that sensitisation is done in order to minimize frictions, especially with military personnel.
"This is very commendable. That President Bola Tinubu approved everyone using the airport to pay toll is a better way of raising revenue and I don't think anyone will condemn this. The industry will be happy for this and I think it's one of the reasons FAAN delayed stickers for 2024.
"However, to avoid friction, FAAN should advertise this so that people will know about it. They should give it time for the message to sink through so as to avoid friction or commotion that will come with it, especially with military personnel
"The second stage is how to harness this fund maximally. They need to put CCTV cameras and should ensure that leakages are reduced to the barest minimum," Ohunayo stated.
