Why FG Insists on Airport Concessions

On Sunday, the Minister of State, Aviation, Hadi Sirika reiterated the need to concession the airports, describing the plan as the only viable option to modernise and make the airports serve travellers better.

 He poignantly noted that there is not much government could do in terms of investing more funds to develop the airports, as government does not have such funds and there is better alternative to improving the infrastructure through airports concessions.

Sirika was prompted to visit the Murtala Muhammed International Airport (MMIA), Lagos that Sunday evening to inspect facilities following the report that there was vibration at the international terminal. During the inspection, it was discovered that the vibration was caused by the control room of chillers, where all the equipment that provide the air conditioning of the facility was stored. The door, which was heavy iron, was not latched after it was closed. It started vibrating, shaking adjoining areas close to the chillers room.

The Minister stated that when the Nnamdi Azikiwe International Airport, Abuja resumes operation on April 19; government’s attention would turn to the Lagos airport and efforts would be made to provide the critical facilities to enhance passenger facilitation.

But he noted that whatever maintenance that could be done to the airport and other airports in the country, the ultimate option to ensure continuous development of these airports is to concession them.

“I think the ultimate solution to all of these is to concession these airports. I have maintained this because I don’t know any other way we can go about it. That is the only way to go because government does not have the resources to continue to invest in these airports. We want to make sure that all the things at the Abuja airport are fixed and the airport returns to normal operation.

However, I think that the ultimate end and solution to all of these is the concession of these airports. I have maintained this. It is the only solution, I don’t know any other way we can do it because government no longer have the resources to continue to invest in these airports,” Sirika said.

The major opposition to concession is the workers. There is also the general apprehension of many Nigerians that the programme would not be transparently done, going by past experience. The aviation labour unions representing the workers believe that their interest would not be protected. The workers few months ago marched in protest against the government’s plan to concession the airports.

The unions said they were aware that some organisations were already coming forward to buy these ‘viable airports’, adding that the unions cannot mortgage the destiny of over 6,000 workers of the Federal Airports Authority of Nigeria (FAAN) into the selfish hands of few political cartel or individual concessionaires.

 They also warned interested parties to stay off from the concession transactions and observed that in the last three months there had been uncontrolled employment and improper placement of certain category of staff without recourse to the Federal Character and Public Service Rule, describing such action as a ploy to render FAAN insolvent for them to acquire.

However, they noted that the Minister, Sirika gave assurance that the interest of Nigerians would not be jeopardised in the concession process of the aforementioned airports.

Sirika had told Nigerians that the decision to concession the airports, was borne out of government’s desire to have effective and efficient management of the airports and adequate utilisation of the abundant skilled manpower in the aviation sector.

 Sirika also noted: “There are entrepreneurs, high net worth and knowledgeable people whose business is to be in the promotion, construction, selling and providing airport facilities around the world. It is the business they know how to do and they also make money out of it.

The concession is necessary but I have to emphasise that this government in power; the APC government is social, democratic government. We are not going to sell the assets; we are going to concession them; So that after concession the assets will still come back to the people and in future they can re-concession them again with better deal and better service delivery.

“We are doing this because government is attending to healthcare, attending to education, attending to roads etc, so it is difficult to find money, especially at this time of recession to put in our airports. And no matter how it is, the people who have the expertise to run the airports will always do better.

“Saudi Arabia is the richest country on earth but they concessioned their airports, so also China, so also US, so also Singapore. I don’t see why Nigeria, with dwindling fortunes, cannot go that route. We have taken the decision as a government and very soon the process will start in earnest. We want to concession the airports and give them to people that will turn it round and make it an airport that we all will be proud of,” the Minister added.

While this has reinforced government’s determination to concession the airports, doubts still linger on the sincerity and transparency of that planned efforts, going by past experiences. So it behooves the minister to convince the sceptical workers that their interest would be protected and to the Nigerians; that it would be different this time.