The Federal Government is targeting a $4 billion revenue (about N1.843 trillion) from the ongoing concession of the Nnamdi Azikiwe International Airport (NAIA) and the Mallam Aminu Kano International Airport (MAKIA).
Seeking the cooperation of Nigerians towards the successful concession of the major airports, the ministry of aviation highlighted the expected gains of the exercise in a statement issued by Oluseyi Odutayo, head of press and public affairs.
According to the statement, over the concession period, the projected nominal revenue from the combined concession of NAIA and MAKIA is expected to exceed $4 billion.
“With over 70 percent of the projected revenues payable to the Federal Airports Authority of Nigeria (FAAN), the government will benefit from a substantial revenue stream that can be utilised for various developmental projects.
“This infusion of private sector investment and the resulting financial benefits will enable Nigerians to implement much-needed upgrades to airport infrastructure, technology, and services” it stated.
It also revealed that the successful bidder, Corporacion America Airport Consortium, (New York Stock Exchange Company), has committed to making an upfront payment of $7 million for Nnamdi Azikiwe International Airport and $1.5 million for Mallam Aminu Kano International Airport.
“Under the concession agreement for Nnamdi Azikiwe International Airport (NAIA) and Mallam Aminu Kano International Airport (MAKIA), the successful bidder, Corporacion America Airport Consortium, a (New York Stock Exchange Company), has committed to making upfront payments of $7 million for NAIA and $1.5 million for MAKIA.
“These immediate payments demonstrate their commitment to investing in the development and enhancement of these airports,” the ministry noted.
The concession process which was supervised by the Infrastructure Concession Regulatory Commission (ICRC), was initiated in 2016 by the Federal Government to attract foreign investment and technical partnerships in the aviation infrastructure sector.
The Federal Government also reiterated its full commitment to addressing ongoing legal disputes transparently and promptly while following due legal process and maintaining transparency throughout the resolution of the legal disputes.
“We urge all stakeholders to support this transformative process and work together to achieve our shared vision of a thriving aviation sector that benefits all Nigerians. By embracing the Nigeria Airport Concession Programme, we can create an aviation industry that drives economic growth, attracts foreign investment, and positions Nigeria as a regional hub for air travel and commerce,” it added.