• Tuesday, March 05, 2024
businessday logo


FG completes concession of Abuja, Kano airports

In alignment with the aviation roadmap, approved by the President on October 18, 2016, the Ministry of Aviation and Aerospace has announced that the concession of the Nnamdi Azikiwe International Airport (NAIA), Abuja, and Mallam Aminu Kano International Airport (MAKIA), Kano has been approved by the Federal Executive Council.

Corporacion American Airport Consortium has emerged the preferred bidder for concession of Abuja, and Kano International Airports.

In a statement issued on Thursday morning by James Odaudu, special assistant on public affairs to the minister of aviation, it was stated that the achievement signifies a notable milestone in our steadfast commitment towards revitalizing the nation’s aviation sector.

“Following a evaluation process that commenced with the Request for Qualification (RFQ) advertised in local and international media on 16th August 2021, and subsequent evaluation of technical and financial bids, coupled with due diligence visits conducted from 27th – 29th December 2022 and 9th – 10th January 2023, the Corporacion American Airport Consortium has emerged as the preferred bidder.

“The consortium, composed of The Corporation American Airports, Mota Engil Africa, and Mota Engil Nigeria, is globally recognized for its superior technical expertise in the design, construction, management, and operation of infrastructure,” Odaudu said.

Read also: Flights cancelled, passengers stranded on Abuja airport runway closure

The Corporation American Airports, a New York Stock Exchange (NYSE) listed airport operator, has presence across three continents, managing 53 airports in six countries and serving approximately 82.4 million passengers in 2019.

He stated that the concession of NAIA and MAKIA will considerably enhance the operational efficiency and profitability of these airports, repositioning them to operate optimally and competitively.

He said this agreement, under a public-private partnership arrangement, will be effective for 20 years for NAIA and thirty 30 years for MAKIA.

In addition, he said the Corporation American Airport Consortium is committed to making upfront payments of USD 7 million for NAIA and USD 1.5 million for MAKIA.

“During the concession period, total projected nominal revenues accruable from the combined Concession of NAIA and MAKIA exceed $4 billion United States Dollars. Over 70% of these projected revenues will be payable to the Federal Airports Authority of Nigeria (FAAN), thereby generating additional revenue sources for the Federal Government,” he explained.

Reacting to the approval, coming same day as signing of the Memorandum Of Understanding (MoU) for the commencement of the African Aviation and Aerospace University (AAAU), Hadi Sirika Minister of Aviation and Aerospace, said the period is momentous for Nigeria’s aviation industry.

The partnership with the Corporacion American Airport Consortium, he said, underscores the Administration’s dedication to improving the standards of the nation’s airports, providing world-class services to all travellers and generating considerable economic benefits for the country.

According to him, the concession will herald a new era of excellence in Nigeria’s aviation industry, saying that he eagerly anticipates a successful partnership with the Corporacion American Airport Consortium.