FAAN proposes revenue budget of N188 billion for 2022

FAAN proposes revenue budget of N188 billion for 2022

The Federal Airports Authority of Nigeria (FAAN) has proposed generating N188 billion in income in the 2022 operational year, representing a 50.4 percent increase over the previous year.

This comes as the agency bemoaned the impact of unpaid payments from clients, particularly Arik Air, on its performance, and called on the National Assembly to intervene to preserve the agency from bankruptcy.

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FAAN also threatened to take action against other clients that broke their earlier agreements, such as concessionaires, private terminal operators, and advertising firms, warning it would not hesitate to terminate their contracts with the agency.

During his opening remarks at the joint oversight visit of the Senate and House of Representatives on aviation on Saturday, Capt Yadudu also explained that, despite the fact that FAAN does not have an operating surplus, the Authority was required to remit N16.7 billion to the Federation Account as contribution to the Consolidated Revenue Fund for the year 2021 alone, despite the pandemic’s impact.

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According to Yadudu, FAAN planned to raise revenue generation to N188 billion in 2022, up from N125.4 billion approved for 2021, which represents a 50.4 percent increase.

The FAAN’s executive director further stated that the Authority has moved its attention from aeronautical to non-aeronautical revenue streams in order to improve revenue performance.

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According to him “Specific areas where effort is being concentrated on include advertisement, car parks, private airport terminal operators, and Bi-Courtney (BOT) revenue sources.”

He explained that the prediction was made in the hopes that the Covid-19 pandemic would have passed, resulting in an increase in passenger travel as well as a lift in the authority’s non-aeronautical revenue base, as previously stated in the 2021 budget performance.

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Mr. Yadudu commended the committees for their efforts at repealing the existing Aviation Agencies Acts, and enacting new ones.

Sen. Smart Adeyemi, Chairman of the Senate Committee on Aviation, praised FAAN for its performance despite the hurdles created by the Covid-19 outbreak in his response.

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He urged FAAN to expand its airport security activities through the use of technology and the motivation of its human resources.

Mr. Nnolim Nnaji, Chairman of the House of Representatives Committee on Aviation, recommended that the new international terminal in Lagos open as soon as feasible because it is the most heavily used gateway in the country.

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He stated that the committee was also concerned about the welfare and well-being of workers, and that aviation was critical to Nigeria’s socio-economic growth.

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