Home Business FAAN recovers N5bn debt from airlines

FAAN recovers N5bn debt from airlines

by Business News Report

The Federal Airports Authority of Nigeria , FAAN,  said it has recovered N5, 242,434,128 part of outstanding debts owed by the airlines and other airport users.  The agency also disclosed that it has remitted N2 billion into the Consolidated Revenue Fund (CRF) account between January and September, 2020. Managing Director of FAAN, Captain Rabiu Yadudu made the disclosure while briefing the visiting members of the House of Representatives Committee on Aviation that are on oversight function to FAAN and other aviation agencies in Lagos. Yadudu also , among others,  appealed to the committee to expedite action on legislations that will help the agency fastrack 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 airpot facilities in compliance with International Civil Aviation Organisation (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 totalled 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. Yadudu also appealled to 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 us achieve better in 2021.” He further explained that “‘Nigeria is  expected to be a hub in West/Central Africa sub-region, adding that this can only be met through more funding for provision of modern infrastructure and technology, this we believe can only be achieved with your support’

“The aviation agencies will urgently need intervention funds from the Federal government to adress infrastructural gaps and position the industry for better service delivery and contribution to the national economy, on this note, we seek your assistance in this area and the other aforementioned areas” The FAAN MD told the committee that FAAN staff salaries are paid in full , dispelling rumours that it has hitherto been paying half salaries to FAAN workers. While acknowledging challenges in the prompt payments, he affirmed that “nobody receives half salary in FAAN, we always say half salary is no salary”.

Meanwhile House of Representatives Committee on Aviation said the Federal Airports Authority of Nigeria, FAAN, should focus 70% of its  investment on provision of critical  infrastructures  in order to improve security and safety of the airports. Chairman, House Committee on Aviation, Nnolim Nnaji made the suggestion while speaking during the committee oversight visit to  FAAN headquarters and facility tour of Lagos airport . While promising that the national assembly will protect the interest of the aviation industry, the lawmakers also asked FAAN to begin preparation for the future by saving for the rainy days so as to avoid a situation like that of the Covid-19 pandemic where the agency had challenges with funding and meeting other necessary needs.

Nnaji also said  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.  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. “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 containerised. What is important for airlines operators is to land in a safe airport with good security, good runways, airfields lightening, operational and perimeter fence that guarantees the safety and insurance of their aircraft.” Speaking on the effects of the recent Covid-19 pandemic on the operations of FAAN, the chairman explained that “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”. While promising to support the industry with necessary legislation, Nnaji said the House will push for the retention of the 25% remittance FAAN pay 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 infrastructures for the aviation industry.

Related Posts