Explainer: What proposed Lekki-Epe International Airport means for Lagos

The Lagos State Government announced this month that it would commence the building of an airport in the Lekki area of the state next year.

The airport, which is expected to cater to a minimum of five million people yearly, will be constructed in partnership with local and foreign investors.

Despite prior promises and the potential, including the extensive plans for the development of the area over the years, the project never took off and the Lekki corridor continued to expand, creating congestion, logistic and traffic chaos, impacting the economic and business opportunities in the area.

While stakeholders in the aviation sector have shared their opinions on models the government would adopt to make the proposed project achievable and sustainable, BusinessDay’s findings show that the airport, when built, would contribute to the aviation sector and improve travel experience for passengers in Lagos.

Seyi Adewale, chief executive officer of Mainstream Cargo Limited, described the proposed project as “a good development, wonderful initiative and excellent planning by Lagos State Government”.

Adewale said it would ease the stress experienced by those living within and around Victoria Island, Lekki, Ibeju-Lekki, Sagamu, Ijebu, Epe axis when driving to the Murtala Muhammed International Airport (MMIA) in Ikeja.

He said it would ease the traffic gridlock in Lagos Metropolis and help to meet the corporate travel needs within the axis, given the growing number of businesses such as Dangote Refinery and Kellogg’s located in and around the Lekki Free Zone.

“The project would complement the Lekki Deep Sea Port in terms of air cargo to complete and support business and needed courier services within the axis; fast-track the construction of major facilities or infrastructure such as good roads (network), regional bank headquarters, four- or five-star hotels, warehouses; ease congestion on Third Mainland Bridge; increase the value of land, building assets, properties within the environ; generate more internally revenue for Lagos State and further improve its internally generated revenues and improve direct foreign investment into the country; and many more benefits to Lagosians,”Adewale said.

Olumide Ohunayo, an aviation analyst, said an airport on the island would improve patronage because passengers would now have proximity advantage and this would encourage more passengers to fly.

Ohunayo said the airport would open more routes for airlines and they can make the airport their hub, adding that the travel spread in Lagos would now be between the mainland and the island.

He said: “The Lekki airport can serve Ogun State, Ijebu and Epe people who would now fly from there to wherever they want. It will also take care of the industries and other companies springing up in Lekki axis.

“The airport will also decongest traffic in Lagos airport road towards Ikeja, improve commerce for Lagos State and develop the economy and Epe axis of Lagos.”

BusinessDay’s findings show that the plan for the construction of an airport at Lekki came to fore during the Babatunde Fashola administration and was supposed to be going side by side with the Lekki EPZ and Deep Seaport, but was delayed.

John Ojikutu, a member of Aviation Round Table and chief executive of Centurion Securities, told BusinessDay that he welcomed the concept of Lekki airport 10 years ago when it was floated.

“Lagos actually deserve a second airport, which originally was planned to be sited at Imagbon near Badagry where the Air Force, now located at Ikeja, was to be located. The bulk of the passengers destined for MMIA live faraway in VI and Lekki. I am sure if statistics of regular passengers at the MMIA are to be taken today, the percentage that comes from these areas cannot be less than 50 percent and they probably are the major reasons for most flight delays when the load factors of flights are not made early,” Ojikutu said.

According to him, the building of the airport can be achieved in many ways but the most promising one that is globally done is concessions through public private partnerships (PPA).
Read also: Lagos gets FG’s nod for Lekki-Epe international airport

“There are many social needs of the people that would need the type of money required to build an airport but which does not make economic sense for any state government to spend such money for building an airport just for few citizens,” he added.

Sindy Foster, principal managing partner of Avaero Capital Partners, shared a different view about the proposed Lekki airport, hinting that Nigeria seemed to be obsessed with building airports and not making airports viable.

According to her, access to the proposed airport is already very congested. “Even without road works or an accident, it took me 7 hours to get from VI to VGC. Imagine if I was trying to catch a flight. They need to incorporate a multi-modal transport system to make the airport viable. Why would anyone choose to fly from there if they have to add more hours on the road than going to Ikeja, particularly for a 1hr flight?” she said.

“What will they do to grow passenger numbers? That would be preferable than cannibalising the traffic from the existing Ikeja terminals? Will they be creating a ‘secondary’ airport, which is in competition with Ikeja, so we can get lower costs of operating for airlines and fares for passengers? Or will they just add another airport with nothing to differentiate it, or with its own USP,” Foster said.

She expressed concerns on whether the government factored in the new airport into the existing concession bid since MMIA is up for concession.

She, however, said since Lagos does not have an airport with transit facilities, the proposed Lekki-Epe airport may work if it is a purpose-built transit airport with hotel accommodation and other facilities for passengers onsite.

In a statement by Aviation Safety Round Table Initiative, a non-governmental organisation (NGO) established to advocate air safety, said the airport would cater to the burgeoning population and businesses around the Lekki industrial layout.

For the benefits to Lagos, the NGO stated that it strongly advocates for a PPP and the need for the regulator, the Nigeria Civil Aviation Authority and the Federal Ministry of Aviation, to give the necessary support and approvals for this project.