Despite stiff opposition by various stakeholders against the privatisation of the nation’s leading airports, Nigeria’s Vice President, Yemi Osinbajo, on Monday, disclosed that the Federal Executive Council (FEC) has agreed to concession the Murtala Muhammed Airport, Lagos, and Nnamdi Azikiwe Airport, Abuja.
Speaking at the fifth edition of the presidential quarterly business forum, which held at the State House, Abuja, Osinbajo said, “I am pleased to say that FEC has approved the concessioning of the Lagos and Abuja airports,” Osinbajo said.
A concession means that private companies and investors will be involved in the day-to-day running of the airport.
Recall that in 2016, the Federal Government indicated interest in concessioning the Lagos, Abuja, Port Harcourt and Kano airports to increase their capacity and efficiency.
But Labour unions in the Federal Airports Authority of Nigeria (FAAN) expressed their lack of trust and confidence in the process, vowing to take all reasonable measures to stop the planned concession of the airports.
This was even as the Minister of State for Aviation, Hadi Sirika, assured that the process of concessioning the airports would be transparent.
“Public Private Partnership (PPP) and concession in the airports have never been done in a structured and transparent manner,” he had earlier said.
“The contracts are not properly prepared, no risk analysis and no financial models. Consequently, it is not surprising that they ended in litigation. I want to assure stakeholders that we will be transparent and the concession is in the best interest of the country.
“We will ensure that Nigerians are given priority in getting jobs in the aviation sector. We will give adequate time for the airlines to prepare themselves but for sure, we will ensure that it happens soonest.”
Sirika has already inaugurated two committees, Project Steering Committee and Project Delivery Committee, for the concessioning process.
In 2007, former president, Olusegun Obasanjo, had concessioned terminal two of the Murtala Muhammed Airport to Bi-Courtney Aviation Services Limited (BASL), the first PPP initiative in the history of Nigeria’s aviation sector.
But the company’s relationship with government since then has been dogged by controversies and litigations leading to suspension of several mega projects in the contract.