…ask questions about transparency
By Matilda Ikediobi and Dickson Omobola
Aviation stakeholders have criticized the procedures that led to the Federal Government’s decision to concession Akanu Indian International Airport in Enugu.
In particular, they questioned the criteria used to select Aero Alliance as the concessionaire.
Festus Keyamo, the Minister of Aviation and Aerospace Development, officially signed the airport concession agreement last week, according to the Ministry, marking a significant turning point in the government’s efforts to modernize Nigeria’s aviation infrastructure through strategic public-private partnerships.
Tunde Moshood, the Minister’s Special Advisor on Media and Communications, said that although the main concession agreement had been reached, two operational concerns (security fees and the airport operations financial model) would be settled in the upcoming weeks to guarantee a seamless implementation.
Prior to this, industry stakeholders had expressed concern and disagreement over allegations of an 80-year concession arrangement.
However, Keyamo revealed that the concession period is 30 years in an interview with Saturday Vanguard following the signing of the agreement.
Group Captain John Ojikutu, retd, an aviation analyst, commented on the news and said that while he supported the concession of international airports, it should not last longer than 20 years so that the government could evaluate the arrangement’s viability.
Ojikutu said that no international airport should be concessioned on its own without being coupled with at least four domestic airports, and that the focus of concession should be on non-aeronautical services.
“It (the concession agreement) is not different from Nigeria Air by Sirika,” he told Vanguard. How can an airport be concessioned without involving people? How many businesses put forth bids? A commercialization and privatization edict was issued under the administration of former President Olusegun Obasanjo, and it is still in effect today. Why is the minister going to do this on his table? Why wasn’t it made public? Why only one airport? Why aren’t all of the airports’ non-aeronautical services covered under the concession?
“Enugu Airport should not be concessioned on its own. Concession it with other little domestic airports. I’ve informed them that our five international airports shouldn’t be used only for concessions. To avoid using the government’s limited resources to service them, each should have concessions with at least four domestic airports. In order for the government to evaluate the amount of money it is earning from the agreement, the maximum duration should be roughly 20 years.
Belujane Konzult’s CEO, Mr. Chris Aligbe, disagreed with Ojikutu, stating that an airport’s concession tenure is typically 30 years.
Aligbe told Saturday Vanguard that public attention should focus more on the terms of the concession rather than its duration. “30 years is normal, but the terms of the concession should worry everyone,” he stated. Concession contracts differ. It can be fifteen, twenty, or thirty years. Some even have a half-century lifespan. The conditions of the contract, which include the model and financial information, are crucial, nevertheless.
Additionally, the National Union of Air Transport Employees (NUATE), the Association of Nigeria Aviation Professionals (ANAP), and the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) voiced reservations about the deal and called for its revocation.
In a letter to the Minister on January 26, General Secretary of ATSSSAN Frances Akinjole, Secretary General of ANAP Abdul Rasaq Saidu, and General Secretary of NUATE Sikiru Waheed stated: “Workers’ representatives in the concession committee were effectively sidelined, thereby sidestepping the necessary labor issues that were supposed to be embedded in the contract after the expected agreement that addresses the labor issues had been signed with our unions.” In this sense, no contract was ever made with our unions. As a result, the procedure was not complete enough to justify approving the Enugu airport’s concession agreement last week.
The Federal Airports Authority of Nigeria (FAAN) employees around Nigeria have been extremely agitated due to the blatant lack of openness surrounding the procedures that led to the signing of the agreement.
Our unions hereby reject the renowned concession agreement in light of the blatant disregard for the interests of the airport employees who would be impacted and beg the Minister to immediately stop the process so that the right actions can be taken.
