The Federal Government is targeting a $4bn revenue (about N1.84tn) from the ongoing concession of the Nnamdi Azikiwe International Airport, Abuja, and the Mallam Aminu Kano International Airport, Kano.
It disclosed this in a statement issued in Abuja on Monday by the Head of Press and Public Affairs, Federal Ministry of Aviation, Oluseyi Odutayo, as it provided updates about the ongoing Nigeria Airport Concession Programme.
The ministry called for the cooperation of Nigerians towards the successful concession of the major airports, stressing that the expected gains of the exercise were enormous.
“Over the concession period, the projected nominal revenues from the combined concession of NAIA and MAKIA exceed $4bn. With over 70 per cent of the projected revenues payable to the Federal Airports Authority of Nigeria, the government will benefit from a substantial revenue stream that can be utilised for various developmental projects,” it stated.
It said this infusion of private sector investment and the resulting financial benefits would enable Nigerians to implement the much-needed upgrades to airport infrastructure, technology, and services.
Providing more updates on the programme, the FMA said the successful bidder had pledged $8.5m upfront payment for the Abuja and Kano airports.
“Under the concession agreement for Nnamdi Azikiwe International Airport and Mallam Aminu Kano International Airport, the successful bidder, Corporacion America Airport Consortium, (a New York Stock Exchange Company), has committed to making upfront payments of $7m for NAIA and $1.5m for MAKIA.
“These immediate payments demonstrate their commitment to investing in the development and enhancement of these airports,” the ministry stated.
The concession process of the airports, supervised by the Infrastructure Concession Regulatory Commission, was initiated in 2016 by the Federal Government to attract foreign investments and technical partnerships in the aviation infrastructure sector.
The Federal Government also reiterated its full commitment to addressing ongoing legal disputes transparently and promptly, while following due legal process and maintaining transparency throughout the resolution of the legal disputes.
The NACP envisions international best practices as a model to improve the quality and operation of airports, enhance the travel experience for Nigerians, attract foreign direct investments, and generate increased revenue for the government.
“We urge all stakeholders to support this transformative process and work together to achieve our shared vision of a thriving aviation sector that benefits all Nigerians.
“By embracing the Nigeria Airport Concession Programme, we can create an aviation industry that drives economic growth, attracts foreign investment, and positions Nigeria as a regional hub for air travel and commerce,” the ministry stated.