FG concessions Port Harcourt airport for 30 years, eyes two others

By Folarin Kehinde The Federal Government has signed a 30-year concession agreement for the Port Harcourt International Airport as part of efforts to attract private investment, improve operational efficiency and unlock the economic potential of the nation’s loss-making airports. The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this on Thursday in Abuja during the signing of the concession agreement with Port Harcourt Airport Company Limited.

Keyamo said the concession was aimed at improving the operational efficiency of the airport, boosting revenue generation and unlocking its commercial potential. He explained that the Federal Government had been using profits generated from major airports to subsidise the operations of other airports that were running at a loss. According to him, the cost of maintaining airports, including personnel expenses, diesel and other operational requirements, has continued to put pressure on government finances.

The minister said government lacked the resources to fully develop the non-aeronautical components of some airports, making private sector participation necessary. “Some of our airports are being run at a loss. We make so much money from some of our primary airports, and most of those profits are ploughed into running other airports,” Keyamo said. He noted that the concession had the approval of President Bola Tinubu and the Federal Executive Council, adding that the process was not a sudden decision but one that successive administrations had struggled to implement.

Keyamo said previous attempts to concession airports were frustrated by resistance from labour unions and court cases involving the government. He, however, attributed the successful conclusion of the process to negotiations with aviation unions, saying the government had secured their agreement before signing the deal. The minister assured workers that the concession would not lead to job losses or a reduction in their conditions of service.

He said Tinubu had directed that the welfare of aviation workers must be protected throughout the concession process. “President Bola Tinubu was very concerned about that, that no worker should lose his job. The conditions of service should remain the same,” he said. Keyamo added that the concessionaire would be subjected to performance reviews every five years to ensure compliance with the terms of the agreement.

He warned that the government could take back the airport if the concessionaire failed to meet the agreed standards. The minister also disclosed that the government had received proposals from investors interested in developing other airports, including those in Benin and Yola. He said the government was considering the proposals as part of efforts to make more airports commercially viable.

Keyamo identified bureaucratic bottlenecks in public institutions as another reason for involving private investors in airport management. He argued that private operators could make decisions faster, attract capital and introduce innovative commercial activities capable of increasing revenue. According to him, airports have significant revenue opportunities beyond passenger and aircraft-related charges, particularly through shopping malls, supermarkets, conference centres and other commercial facilities.

He cited the potential of the Port Harcourt airport, noting that its location around the Gulf of Guinea could make it a major regional aviation hub. Speaking on behalf of the concessionaire, Group Executive of R28 Holdings, Eyo Asuquo, said the company would bring international standards and improved facilities to the airport. Asuquo described the concession process as rigorous, saying the investors had undertaken extensive engagements within and outside Nigeria to demonstrate their capacity to execute the project.

He assured Nigerians that the agreement would not result in staff retrenchment, adding that the expansion of the airport would create additional employment opportunities. He said the company’s ambition was to transform the facility into an airport city and position Port Harcourt as a major hub for the Gulf of Guinea. Asuquo added that the company would open up investment opportunities to other interested stakeholders to support the development of the airport.