Pennick disclosed that Asaba Airport charges ₦25,000 per aircraft landing, equivalent to about €13 internationally. He admitted that at such a rate, the airport struggles to recover infrastructure investments, especially with limited daily flight activity.

BY ANTHONY OMOH

Managing Director of Asaba International Airport, Mr. Christophe Pennick, has warned that Nigeria’s private airport financial burden is reaching unsustainable levels due to excessive regulatory fees and statutory taxes.

Speaking during the 25th Airports Business Summit & Expo at the NiGAV Centre, Pennick described how the increasing costs are pushing private airport operators to the brink.

“Private airports are expected to be profitable,” he said. “But we pay full commercial rates to regulatory bodies that government-owned airports do not directly bear.”

Agencies such as the Nigerian Airspace Management Agency (NAMA) and the Nigerian Meteorological Agency (NiMET), according to Pennick, impose financial obligations on private airports.

Yet, those same agencies benefit from shared revenues through the 5 percent passenger ticket levy and cargo sales charges remitted to the Nigerian Civil Aviation Authority (NCAA).

“This setup results in double taxation,” Pennick stressed. “We pay service fees and also lose part of the same revenue to the same agencies through other channels.”

He clarified that being an airport operator doesn’t guarantee massive profits. “The perception that airports generate huge cash is incorrect. Most earnings go into compliance, staff salaries, equipment upgrades, and mandatory service payments,” he stated.

Even basic infrastructure management, like maintaining the runway, comes with a hefty price tag. “The runway is our most expensive asset,” he said. “You need to landscape it, secure it, fence it, manage wildlife risks—it’s all costly and constant.”

Pennick disclosed that Asaba Airport charges ₦25,000 per aircraft landing, equivalent to about €13 internationally. He admitted that at such a rate, the airport struggles to recover infrastructure investments, especially with limited daily flight activity.

“People might see passenger footfall and assume we’re making a fortune. But when you account for operational overhead and regulatory obligations, the balance sheet tells another story,” he explained.

Notably, unlike public airports, private operators face stricter accountability. “We cannot default or delay our obligations,” Pennick emphasized. “We’re audited financially and operationally on a regular basis. That’s fine—we support transparency. But the expectations should be practical.”

He also touched on the legal and bureaucratic confusion that plagued Asaba Airport’s early concession period. “Even the state government wasn’t clear on its role at the beginning,” he revealed. “It took time to define rights, obligations, and responsibilities. And we’re still refining those terms today.”

Moreover, he pointed out that Nigeria’s current aviation policy environment still lacks a robust framework for concessionaires. “There must be regulatory clarity. Private investors need to understand their risks and rights before they can invest,” he stated.

Therefore, he urged federal authorities to reform aviation tax structures and streamline the responsibilities of oversight bodies to better support non-FAAN airports.

“If the country truly wants more private capital in aviation, the private airport financial burden needs immediate reassessment,” he said. “Otherwise, this model becomes unsustainable.”

In conclusion, Pennick maintained that Nigeria’s aviation future depends on equitable treatment of private players. “We’re not asking for special favours,” he added. “We’re asking for fairness so that our business model remains viable, encourages innovation, and contributes to national growth.”