Minister, FAAN task private sector on airport investment, viability

Seeking collaboration and emphasising the importance of public-private partnerships, Minister of Aviation and Aerospace Development, Festus Keyamo and Managing Director of the Federal Airport Authority of Nigeria (FAAN), Olubunmi Kuku, have urged the private sector to take advantage of opportunities within the aviation industry and invest.

The aviation Minister and FAAN MD said this yesterday at the Airport Business Summit and Expo (ABSE) 2024 Africa, themed: “Addressing Airport Viability as a Key to Successful Aviation Business Ambition,” held at Lagos Airport.

According to the Minister, the government alone cannot shoulder the burden of airport development and expansion.

“Public-private partnerships offer a viable solution to financing infrastructure projects and modernising airport facilities. Successful Public Private Partnerships (PPPs) ensure that private investment is harnessed to improve services while allowing governments to focus on regulation and oversight,” Keyamo said.

He mentioned that to achieve airport viability, collaboration across the aviation ecosystem is essential. Explaining that the government, airport authorities, airlines, regulators, and private sector investors must work together to align strategies and priorities, Keyamo said that the role of the government, in particular, is to create an enabling environment that encourages innovation, competition, and investment in the sector.

“This includes adopting policies that incentivise infrastructure development, streamlining regulatory processes, and ensuring airports have access to the financing and resources they need to thrive,” Keyamo noted.

The aviation Minister said that beyond their role in supporting aviation businesses, airports are vital drivers of national and regional economic development.

“Airports generate jobs, attract foreign investment, and contribute to tourism, trade, and business activities. For countries and regions looking to accelerate their economic growth, airports are key assets that must be nurtured and developed.”

The MD of FAAN shared the same perspective stating that the government cannot make the investment needed to sustain the aviation sector. “It’s impossible,” she emphasised.

Kuku called stakeholders to explore the private sector models that work and put them in legal entities or legal frameworks.

“I believe the concessions have been used largely, and I know that there have been challenges with them, but there are successful models of concessions that have worked globally. I also continue to talk about joint ventures, and management contracts, some of which have been leveraged across various airports globally. Some of the airports within the United Arab Emirates (UAE) have leveraged some of this model.”

She urged the private sector to enter the aviation industry with their technical expertise to allow the sector to scale up.

“I also want to say that the story of aviation or the airports in Nigeria is not all doom. There is that opportunity for growth and this is the time to seize that opportunity.”