The Federal Airports Authority of Nigeria (FAAN) has plugged loopholes through which it loses money by introducing cashless transactions in order to optimise revenue generation.
The agency has also introduced a new system to promote efficiency, transparency in its operations and to maximise the skills of its well-trained personnel.
This was disclosed by the Managing Director of FAAN, Capt. Rabiu Yadudu, who said that the agency is poised to boost its revenue base as it prepares to open its new international terminal currently under construction by the China Civil Engineering Construction Corporation (CCECC) at the Murtala Muhammed Airport, Lagos.
The new terminal would be unveiled in February 2021.
Yadudu made this known when the House Committee on Aviation visited the agency’s facilities at the Lagos airport yesterday.
He noted that FAAN’s management had taken some critical steps to improve revenue generation and curb spending in recent months, assuring that the agency would continue in that stead.
Some of the steps taken according to Yadudu included the suspension of procurement of non- essential items, reduction in all staff related cost to the barest minimum and aggressive debt recovery drive, which he said was hampered by the Covid-19 pandemic.
Others according to him are plugging of revenue loopholes, cash and fly policy, promotion and enforcement of cashless policy and the continuous strengthening of Business and Operational Excellence by improving on people, processes, platforms and performances.
“In keeping with our vision and mission, we have strategically positioned ourselves to ensure that we have modern and up-to-date high-tech equipment and facilities that will aid better security, safety and comfort of all stakeholders.
“I will like to say that aviation business is a global, technical and highly regulated with huge infrastructure requirements; furthermore, it is necessary to reiterate that aviation business sis driven by volumes and turnaround with operating profit margin of between 2.5 per cent to 5 per cent. Without the required volumes and traffic, it will be difficult to breakeven.
“The aviation agencies will urgently need intervention fund from the Federal Government to address infrastructural gaps and position the industry for better service delivery and contribution to the national economy,” the FAAN Managing Director said.
Also, the Chairman, House Committee on Aviation, Hon. Nnolim Nnaji, lauded FAAN for steps taken so far to improve services for airlines, air travellers and other users of the airports nationwide.
Nnaji emphasised that there had been some improvements in the facilities at the airports in the last one year, despite the challenges of 2020 and charged the management of FAAN to invest more on safety and security infrastructure.