A total numberof 17 out of the 20 airports owned and managed by the Federal Government are now regarded as ‘unviable’, due to their inability to generate revenue.
Reports have shown that these 17 airports have been operating at a loss for the past three years.
Also, with the exception of Murtala Muhammed International Airport (MMIA), Lagos; Nnamdi Azikiwe International Airport (NAIA), Abuja; and Port Harcourt International Airport (PHIA), Rivers State, no other airport owned by the federal government has enough revenue to cover the cost of operations alone.
Flight operations have been grounded in the country for the past 2 months due to the lockdown occasioned by the coronavirus pandemic.
In Nigeria, the Federal Airports Authority of Nigeria (FAAN) manages and supervises all government airports in the country on behalf of the Federal Government, of which 20 are owned by the Federal Government, with an additional four owned by state governments.
Reports recently revealed that extra funding frequently patronized airports of Lagos and Abuja which had excess revenue of about N26.1 billion was used to cushion the operational cost deficits incurred by the unviable airports in 2017, 2018 and 2019.
A fact-sheet of revenue and expenditure of the 20 federal airports and FAAN headquarters in the last three years, revealed significant revenue gaps and deficits across these airports.
Among them include the Kaduna International Airport which was upgraded during the 2017 closure of Abuja airport.
In the last three years, it garnered a total of N1.027 billion in generated revenue, out of which N716.7 million was collected. However, the expenditure was in excess of N4.41 billion, leaving a deficit of N3.69 billion.
In the last three years, it garnered a total of N1.027 billion in generated revenue, out of which N716.7 million was collected. However, the expenditure was in excess of N4.41 billion, leaving a deficit of N3.69 billion.
Infact, due to the banditry and kidnapping that has surged along the road leading to the airport, the airport has been temporarily shut due to fear of safety of travellers.
Same goes for Mallam Aminu Kano International Airport, Kano as in 2017, 2018 and 2019 pooled a total of N8.28 billion in generated revenue and collected N7.16 billion but its expenditure totalled N9.6 billion, leaving a deficit of N2.44 billion.
In the same vein, Katsina Airport made a paltry sum of N250.8 million generated revenue in three years, out of which only N42.1 million was collected. Its cost of operations was put at N1.58 billion, leaving a deficit balance of N1.54 billion.
Same case with Sokoto Airport which had a total of N725.7 million generated revenue, out of which N400.1 million was collected. The cost of operation was in excess of N2.71 billion, which resulted in a shortage of N2.31 billion.
Down south, Ibadan airport in three years made a total of N349.2 million in generated revenue and collected N244.9 million. The expenditure amounted to N1.39 billion with a deficit of N1.14 billion.
Also, Ilorin International Airport had a total accrued revenue of N437.1 million revenue in three years and collected N264.2 million. The expenditure was in excess of N2.453 billion, giving a shortfall of N2.19 billion.
Similarly, in Akure airport, Ondo state, it pooled a total of N175.8 million in generated revenue and collected N168.7 million. But the expenditure was N1.06 billion, leaving a difference of N893.7 million.
The Benin airport in Edo State is also considered ‘Unviable’. The airport generated a total of N993.2 million in three years and collected N930.1 million. The total cost of operations was put N2.02 billion, leaving a shortfall of N1.09 billion.
The Margaret Ekpo International Airport, Calabar, had a total of N540.8 million generated revenue, though collected more put at N559.6 million, the expenditure was as much as N2.50 billion, giving a deficit of N1.94 billion.
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