The Federal Airports Authority of Nigeria (FAAN), overseeing 26 airports, grapples with financial strain, according to concerns raised by former Deputy Director Finance, Philip Emeato. Hindered by a 40% IGR remittance to the government, FAAN struggles to fund crucial projects, including infrastructure rehabilitation and terminal upgrades, essential for meeting ICAO standards.
Emeato, emphasizing FAAN’s self-funding model with over eight thousand staff, reveals challenges in an industry demanding continuous training. The government’s 2012 decision to increase revenue agency contributions to 40% hampers the execution of airport projects. The TSA, receiving 40% IGR, obstructs project execution, evident in dilapidated airport roads and delayed security projects.
Former Managing Director Capt. Rabiu Yadudu further accentuates FAAN’s financial woes, citing the contradiction of the FAAN Act 2022, which mandates reinvestment in sector development.
Despite aspirations to enhance airports by installing airfield lighting, financial constraints impede progress. The 40% remittance to the TSA obstructs facility upgrades, training, and addressing capital-intensive infrastructure deficits. FAAN, struggling to maintain runways and security, pleads for a policy review, as internally generated revenue depletes due to remittance.
In essence, FAAN’s substantial remittance to the federal government fuels financial challenges, hindering airport improvements and staff development. Aspirations remain unrealized due to the significant burden imposed by the 40% remittance policy. A call for policy revision echoes, as FAAN seeks the means to fulfill its mandate amid fiscal challenges.