Just In : FG Completes Concession Of Abuja, Kano Airports
In alignment with the Aviation Roadmap, approved by President Muhammadu Buhari on 18th October 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 (FEC).
This achievement, the minister said signified a notable milestone in the steadfast commitment of the outgoing government towards revitalizing the nation’s aviation sector.
A statement issued by the special assistant on public affairs to the minister, James Odaudu, declared: “Following a thorough and comprehensive evaluation process that commenced with the Request for Qualification (RFQ) advertised in local and international media on 16th August 2021, and subsequent rigorous 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.
“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.”
The concession of NAIA and MAKIA according to the minister, Hadi Sirika will considerably enhance the operational efficiency and profitability of these airports, repositioning them to operate optimally and competitively.
This agreement, under a Public-Private Partnership arrangement, will be effective for twenty (20) years for NAIA and thirty (30) years for MAKIA.
The minister added that the Corporacion 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 while 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.
Reacting to the approval, coming the same day as the signing of the Memorandum Of Understanding (MoU) for the commencement of the African Aviation and Aerospace University (AAAU), the Minister described the period as 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.
In a related development, the Federal Executive Council also approved the change of nomenclature of the Federal Ministry of Aviation to the Ministry of Aviation and Aerospace with immediate effect.
The new nomenclature is in line with the nature of the sector, being under the exclusive management and regulation of the Federal Government.
