Airlines, airport users decry FAAN’s multiple charges

Murtala Muhammed International Airport MMIA

Principal Managing Partner of Aeronexus Partners Ltd, Gbenga Onitilo, said the scale of charges imposed across Nigeria’s airports by the Federal Airports Authority of Nigeria (FAAN) is placing a heavy financial burden on passengers, airlines and airport businesses.

Onitilo, in an interview with The Guardian yesterday, said FAAN’s revenue framework spanned virtually every area within the aviation ecosystem, stressing that it was creating a “full-spectrum charging model” that affects all categories of airport users.

He specifically mentioned the rising parking fees, access tolls and passenger service charges (PSC), which stand at $100 for international passengers and $50 for regional travellers among the charges.

The aviation expert insisted that the rates are on the high side compared to service delivery levels.

He also mentioned concessionaires leasing retail, service space payments and 10 per cent concessionaires’ gross earnings as some of the charges putting additional pressures on players within the sector.

He said: “Every layer of the airport experience, parking, entry, concessions, leases, fuel throughput, has a price tag attached. The architecture is simple: touch anything, pay something. But is that sustainable for an industry that should be driving connectivity, trade and economic expansion?

“‎‎‎‎Now look at the concession side. FAAN allocates space to operators, collects lease rentals, imposes service charges, and still demands up to 10 per cent of gross earnings, not profits. That distinction is not semantics; it’s strategy. It means operators carry all the cost burdens while the authority secures its upside regardless of business performance.

“‎‎Shift upstream to the airlines and the pattern repeats. FAAN earns on every litre of Jet A1 dispensed across the country. Lay that with other taxes and surcharges and you create a cost stack that squeezes airline margins to the bone.”

He lamented that these cumulative costs significantly increase the cost of running domestic and international flights in the country, stressing that airlines often pass these expenses to passengers through higher airfares.

Onitilo said the agency’s approach was a strong emphasis on revenue generation, rather than facilitating growth and improving efficiency in the ecosystem.

He advocated for a comprehensive review of the charging structure, noting that it was important to align passenger charges with measurable service standards.

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