Mr. Fortune Idu urges a redesigned funding structure in Nigeria’s aviation, stressing understanding aviation risk for lasting financial partnerships.
Criticizing the absence of a dedicated financing mechanism, Idu stated that there is none in Nigeria for aviation presently. Further lamenting the government’s substantial withdrawal of reinvestment proceeds, hindering sector growth.
Challenges in Current Financing:
Local airlines, burdened by high-interest loans, face growth obstacles, prompting Idu to propose a sinking fund and the establishment of an Aviation Bank.
Strategic Airport Development:
Idu highlights specialized airport development, positioning Lagos and Abuja as potential West and Central Africa Regional Air Transport hubs. He envisions unique airport infrastructure, aligning with national ambitions and leveraging the Africa Single Transport Market Initiatives.
Advocating master plans for Nigerian airports, Idu stresses the necessity for independent ambitions, ensuring sustainability and providing investment guidance. He proposes partnership with Munich Airport International to access global markets through Europe.
FAAN Restructuring for Efficiency:
Idu critiques the Federal Airports Authority of Nigeria (FAAN), deeming its structure irrelevant. FAAN’s divergent responsibilities hinder effective service provision, particularly in airport development. Idu suggests dividing FAAN into three entities for efficient concession models, creating jobs and driving comprehensive airport privatization.
He suggests, “The unbundling of FAAN results in an Airport Development Authority overseeing airport development in Nigeria.” This entity ensures compliance with regulations and drives strategic planning for sustainable growth.
He suggests establishing the Airport Management Company to focus on private-sector airport operations, competing for future concessions. This would enhance efficiency in service delivery and innovation.”
Finally, Idu recommends the establishment of the Federal Airports Property Company Ltd, tasked with owning, safeguarding, and maximizing the value of airport lands and properties.
