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From left Capt Rabiu Yadudu, MD FAAN; Hon Nnolim Nnaji, Chairman, House committee on Aviation inspecting the new terminal

FAAN remits N2bn to CRF, recover N5bn as Reps urge agency to focus 70% of reserves on infrastructure

HOUSE of Representatives Committee on Aviation has urged the Federal Airports Authority of Nigeria (FAAN) to ensure that 70% of its investment gravitates towards provision of critical airport infrastructure for the aviation industry in order to improve security and safety of the airports.

This is coming as the airport managers disclosed its revenues and expenses for the year 2020 and revealed that it remitted N2 billion into the Consolidated Revenue Fund (CRF) account between January and September,  2020

Also FAAN stated that during the nine months target set FAAN generated N30, 084, 235, 670, of which N27, 967, 455, 341 was actual collection with  N17, 610, 732, 427 coming from aeronautical revenue sources while N5, 776, 622, 874 came from non-aeronautical sources and N5, 242,434,128 recovered from outstanding debts owed.

These figures were revealed when the parliamentarians visited FAAN to carry out their oversight function asking the agency to save for the future to avoid a repeat of the COVID-19 Pandemic situation where the agency had challenges with funding and meeting other necessary demands.

Chairman, House Committee on Aviation, Nnolim Nnaji while speaking during a tour of the Lagos airport on Tuesday promised that the provisions of the new aviation industry bill before the house will, when passed, be friendly to both staff of the agency, the industry and the airline operators affirming that without the airlines, there will be no FAAN and verse versa.

He promised the House would support the industry with necessary legislation and push for the retention of the 25% remittance FAAN pays into the consolidated account of the federation to enable them put in place a ten year developmental plan and use the funds to build critical infrastructure for the aviation industry.

Nnolim said, “l believe that whatever investment FAAN will do, they should put 70% of the investment in providing infrastructure. That is the path we should tow now.

“The essence of preparing for the future just happened to us. Let your future begins today. You have to prepare for any situation, nobody expected this kind of situation we find ourselves but it is a lesson to all of us that we have to prepare for any eventuality and in doing so we need to go into aggressive infrastructure development in areas of non-aeronautical aspects of the industry”

“You have to find how to put up a strategy on how to focus on safety and security of the airports. The airport terminals can be containerized. What is important for airlines operators is to land in a safe airport with good security, good runways, airfield lightening, operational and perimeter fence that guarantees the safety and insurance of their aircraft.”

Meanwhile, managing director of FAAN, Captain Rabiu Yadudu after revealing the N2bn remittance Consolidated Revenue Fund (CRF) account told the visiting members of the House of Representatives Committee on Aviation that the agency currently does not have any operating surplus

Yadudu also appealed to the committee to expedite action on legislations that will help the agency fast track its operations across the country’s airports.

He said “FAAN does not have operating surplus.  However, between January and September 2020, the Authority has remitted about N2 billion to the Consolidated Revenue Revenue Fund (CRF) account.

The Authority is also mindful of the National Assembly committees on Aviation in ensuring that FAAN is exempted from payment of operating surplus to the Federal government.  Exception of FAAN will guarantee that the revenue generated by the airports is transparently reinvested wholly in operating and developing airport facilities in compliance with International Civil Aviation Organization (ICAO) standards and recommended practices on airport generated revenue” , he said.

According to the FAAN helmsman, as at September 30, 2020, the FAAN generated a total of N30, 084, 235, 670, during the nine months target set, out of which N27, 967, 455, 341 was actual collection.

“From this amount, N17, 610, 732, 427 was from Aeronautical source of revenue, N5, 776, 622, 874 from non-aeronautical sources and N5, 242,434,128 recovered from outstanding debts owed.

” From January to September 2020, the revenue target of Aeronautical source was N38, 988, 439, 354 and actual generation totaled N17, 823, 332,992 out of which N17, 610, 732, 478 is actual collection giving a percentage performance of 98.81 on revenue collected over generated.

“The Authority is shifting focus from Aeronautical sources of revenue to non-aeronautical; FAAN is presently operating at only about 30 percent of its pre-COVID capacity. The Authority has set up a revenue task force to aggressively drive revenue, follow up on outstanding debts owed and explore all possible investment opportunities”, he said.

He called on the lawmakers to give accelerated attention to the agency’s budget saying “The 2021 IGR budget was submitted to the committee for consideration, we believe that early consideration and passage will enable achieve better in 2021.”

 

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Nigerianflightdeck is an online news and magazine platform reporting business stories with a bias for aviation and travel. It is borne out of the intention to inform, educate as well as alter perceptions with balanced reportage.

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