• Tuesday, June 18, 2024
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BusinessDay

What FAAN, ICAN partnership means for aviation industry

No more flight delays, cancellations after runway reopening – FAAN

In a move aimed at enhancing transparency and fiscal responsibility within Nigeria’s aviation sector, the Federal Airports Authority of Nigeria (FAAN) and the Institute of Chartered Accountants of Nigeria (ICAN) have recently announced a collaboration.

This strategic partnership has sparked reactions from aviation experts and analysts, who are eager to discern its potential impact on the industry.

Innocent Iweka Okwuosa, the 59th president of ICAN, along with his executive committee, engaged in discussions with Olubunmi Kuku, FAAN’s managing director, to formalise this alliance.

During the meeting, Kuku underscored FAAN’s dedication to human resources development and emphasised the inauguration and growth of the ICAN Aviation Chapter, signifying a significant milestone in the collaboration.

Highlighting the pivotal role of accountants within FAAN, Kuku emphasised their contribution to the agency’s workforce, citing their commitment, accuracy, transparency, and integrity in executing their duties. With over 100 accountants already integrated into FAAN’s operations, the collaboration with ICAN seeks to further bolster financial accountability and streamline revenue management practices within the aviation authority.

Bernard Bankole, travel and tourism expert and chairman of Airlines and Passengers’ Joint Committee (APJC) of the International Air Transport Association (IATA) lauded the partnership, foreseeing benefits in enhancing accounting practices within FAAN.

Bankole noted that the integration of ICAN’s expertise would fortify accountability measures, identify revenue opportunities, and mitigate financial leakages within the system.

He underscored Kuku’s background in accounting advisory, having previously worked with Ernst and Young, as a significant asset that would elevate FAAN’s financial management standards.

“It is a good one because it will help FAAN to build an accounting profile in terms of enshrining accountability into the system, and they will be able to see opportunities in the areas where they can make additional revenue and block certain levels of leakages that could be in the system,” Bankole told BusinessDay.

“So it is a welcome idea, and considering the fact that the managing director of FAAN has been in that space as well when she worked at Ernst and Young, an accounting advisory firm; that should make things a lot better in the public sector office like FAAN. So it is a great one to be noted for the industry,” he said.

Echoing similar sentiments, Olumide Ohunayo, head of research & corporate travel at Zenith travel & consult, emphasised the importance of tangible outcomes resulting from the FAAN-ICAN collaboration. Ohunayo stressed the need for robust fiscal responsibility measures, urging FAAN to demonstrate a commitment to transparent accounting practices.

He expressed optimism that ICAN’s involvement would instil a culture of financial prudence and deter mismanagement of funds within FAAN, ultimately benefiting both the industry and travellers alike.

“It is good for the industry to see the collaboration between FAAN and ICAN. I hope the collaboration goes beyond snapping pictures and addressing the press, but showing something positive that can be benefited from the partnership,” Ohunayo said to BusinessDay.

The aviation analyst went on to say that “ICAN is an accounting body that shows that you must be responsible fiscally, and I think that is what FAAN needs at this period. We need to see some seriousness in the accounting reportage of FAAN; that will help address some of the issues concerning finances and the eagerness for the government to just take money,” he added.