Nigerian Govt. plans to concession four Airports


Federal government of Nigeria is planning to concession four airports in the country for 30 years.

The assets are Lagos, Abuja, Port Harcourt, and Kano airports.

According to government, they would be on concession for a minimum of 20 to 30 years.

Minister of Aviation, Hadi Sirika, said the decision was taken because, despite the huge potential that abounds, the airports were currently operating at a sub-optimal level.

This was disclosed in a document on frequently asked questions about airport concession released by the Federal Ministry of Aviation in Abuja.

In the document, the government named the airports/parts that were up for concession as Murtala Muhammed International Airport, Lagos: international and cargo terminals; and Nnamdi Azikiwe International Airport, Abuja: international, domestic, and cargo terminals.

Others included the Port Harcourt International Airport, Port Harcourt: international, domestic, and cargo terminals; and Mallam Aminu Kano International Airport, Kano: international, domestic, and cargo terminals.

Additional explanation on the duration of the concession in a separate document, said, “Infrastructure concessions of this nature come with a significant financial obligation which any responsible concessionaire will no doubt be keen to recoup.

“To this end, we envisage a minimum of 20 to 30 years for the programme, which may be extended depending on performance and Nigeria’s best interests.

“That said, the duration is not set in stone and will be subject to negotiation and then final approval by the Federal Executive Council.”

The minister through the Director of Media, Ministry of Aviation, Dr James Odaudu, explained that Federal Government was starting with the most strategic assets because the successful delivery of the concession programme would give all stakeholders the confidence required to consider other possibilities in the sector.

According to the ministry, the concession applied to the non-aeronautic assets of the airports located in the Passenger and Cargo terminals.

The ministry added that they are thus comprised of the assets from the entry door of the airport to the point of embarking plane, and from deplaning to the exit doors.

It also explained that this space commonly referred to as the passenger terminal comprised of retail spaces, waiting and seating areas, airport, and airline lounges, baggage collection, check-in counters as well as administrative offices.

In addition, the ministry said the cargo terminals were comprised of the facilities between the point of entry and up to loading and off-loading points, including administrative offices within said facilities.

The document clarified that “there shall be no change in the ownership structure of the airports involved in this programme. What has been mandated by the Federal Executive Council is a concession programme.

“The decision of the government to settle for concession rather than outright selling of the assets is because of tremendous national importance from an economic and security perspective.”

The document added that, “We believe it remains in Nigeria’s best interest to maintain ownership for this reason.

“A concession is governed by a concession agreement whereby two parties – a private sector investor and a Public sector owner of an asset enter into an agreement that gives the Private sector investor the right to operate said asset for a specific business and within the Government’s jurisdiction, subject to certain terms that are agreed upon by both parties during the negotiation and contracting phase.

“It is thus a form of Public-Private Partnership whereby there is no transfer of eq uity between the contracting parties.”

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