FAAN Sees Airports As Investment Platforms Not As Infrastructure–Kuku
The Managing Director, Chief Executive Federal Airports Authority of Nigeria(FAAN), Mrs Olubunmi Kuku said that the current FAAN sees airports as investment platforms, a departure from the past where they are seen as Infrastructure.
Kuku, who spoke at the just concluded two-day Nigerian Aircraft Acquisition and Investment Summit(NAAIS) in Lagos, highlighted that for many years, airports were seen simply as infrastructure made up of runways, terminals and control towers, adding that today, FAAN view them as platforms for investment and value creation.
Kuku said that across FAAN’s network of airports, there are clear opportunities for: aeronautical investments: airside capacity enhancements, terminal upgrades, improved ground handling and safety-critical systems.
She mentioned that the non-aeronautical investments include: commercial real estate, cargo and logistics facilities, hospitality, retail and other revenue-generating services.
On support services opportunities at Airports, she said are: Maintenance, Repair and Overhaul (MRO) facilities, training academies, simulators and other technical support platforms.
Kuku explained that these investments do more than beautify airports as they lower operating costs for airlines over time, improve passenger experience and throughput, create jobs, skills and technology transfer and enhance the bankability of projects tied to aircraft acquisition and operation.
She said that FAAN is fully aligned with the policy direction of the Federal Government to:
- Modernise and expand aviation infrastructure.
- Strengthen safety, security and regulatory compliance.
- Attract private capital and expertise through fair and transparent processes.
- Support Nigerian airlines in their fleet renewal and expansion plans.
She affirmed that FAAN recognised that aircraft acquisition is capital-intensive and long-term in nature, adding that is why the broader ecosystem airports, air navigation services, regulatory agencies, security and facilitation systems must be predictable, efficient and investor-friendly.
She informed the stakeholders that they will continue to see reforms that speak to this: from digitalisation of processes at Nigeria airports, to improved coordination with sister agencies, to a stronger focus on quality service delivery and cost efficiency.
She hinted that as policymakers, operators, financiers and investors, their contributions will shape the trajectory of Nigeria’s aviation sector for decades to come.
According to the FAAN boss, Nigeria is one of the most compelling aviation markets on the African continent and We are Africa’s most populous country, with a young, mobile and increasingly aspirational population.
According to her, Nigeria’s economy is diversified and regionally connected, generating sustained demand for both passenger and cargo traffic and that- Nigeria is naturally positioned as a hub for West and Central Africa, with the potential to connect Africa to the rest of the world more efficiently.
She said Nigeria in the face of global shocks – from pandemics to macroeconomic headwinds air travel in and out of country has demonstrated remarkable resilience.
she acknowledged that load factors, are recovering, routes are rebounding, and new city-pairs are under consideration.
Kuku emphasized that for serious, long-term investors, what matters is not noise in the short term, but the fundamentals and that the fundamentals of the Nigerian aviation market remain strong.