FG suspends Nigeria Air and its airport concession projects

Nigeria's Minister of Aviation and Aerospace Development, Festus Keyamo, has announced that all ongoing projects involving the operations of Nigeria's national carrier (Nigeria Air) and airport concessions have been temporarily suspended.

Mr. Keyamo revealed this on Thursday during an inspection tour of Lagos airport facilities, said a statement released Friday by the ministry's head of public affairs, Odutayo Oluseyi.

“Regarding the concession of the airports and the air project of Nigeria, the Minister declared that everything would be put on hold (suspended) until he informs the President of his conclusions,” the statement said.

Mr. Keyamo said while he was willing to protect local airlines, he expected them to be more efficient and effective, noting that issues of flight cancellations and delays will be reviewed and that laws will be enforced if necessary.

The Minister further ordered owners to remove unserviceable aircraft.

The decision to suspend Nigeria Air's planned operation and airport concession came less than two weeks after Mr Keyamo was sworn in as aviation minister and less than four months after his predecessor , Hadi Sirika, unveiled the controversial airline in May.

Background

After several broken promises, Sirika launched Nigeria's flag carrier, Nigeria Air, less than three days before leaving office.

The development has further heightened concerns among Nigerians, with many taking to social media to question the decision and Mr Sirika's handling of the airline's proposed operation. The House of Representatives Aviation Committee then called for the suspension of the establishment of Nigeria Air and the prosecution of those involved in the inauguration of the national carrier, calling the exercise "fraud".

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Similarly, less than two weeks before the end of former President Muhammadu Buhari's term of office, the Federal Executive Council (FEC) approved the concession of Nnamdi Azikiwe International Airport (NAIA), Abuja, and from Mallam Aminu Kano International Airport (MAKIA). , Kano, at the Corporacion American Airport Consortium.

ALSO READ: Hadi Sirika and Nigeria Air: Understanding the failure of the Buhari administration, By Jibrin Ibrahim

This was criticized by the Nigerian Senate in July during the plenary chaired by Deputy Speaker of the Senate, Barau Jibrin. Under the terms of the concession agreement, Corporacion America Airports Consortium will make an upfront payment of $7 million to operate Abuja airport for 20 years and $1.5 million for Kano airport for 30 years. years.

Total revenue from the concession of the two airports during this period is estimated at over $4 billion.

Optimize FAAN revenue capacity

According to the statement, Mr. Keyamo said that the government is considering optimizing the production capacity of the Federal Airports Authority of Nigeria (FAAN).

"60% of FAAN's revenue comes from Lagos and as such the new terminal is expected to be utilized optimally," the statement read.

The Minister explained that the new airport terminal has 60 check-in points and can accommodate heavy traffic.

He said the old terminal should get a complete overhaul, noting that the co...