The Federal Airports Authority of Nigeria (FAAN) has hinted of its plans to increase tariffs across all airports in the country as part of its sustained efforts to bolster its revenue collection.
The Authority gave this hint at its Directorate of Commercial and Business Development (DCBD) Stakeholders Engagement Forum held Monday in Lagos.
Speaking at the forum, Director of Commercial and Business Development, Mrs. Adebola Agunbiade, said the agency would also implement a complete transition to automated, contactless payment system for real time transactions.
According to her, the FAAN is currently generating 92%of its revenue from aeronautical sources and only eight percent from non-aeronautical activities, which contrasts with what obtained in the developed countries, where non-aeronautical sources typically account for over 40% of airports’ revenue earnings.
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The Director promised stakeholders and service providers that they would receive adequate notice from the authority’s management before the proposed tariff implementation takes effect.
She said: “We have to find the means to review our tariff in such a way that it’s not too much on you but it’s also helping us to pay our bills.”
In her keynote address at the event, FAAN Managing Director, Mrs. Olubunmi Kuku, stressed the authority’s commitment to eliminating cash transactions across all airport payment points and replacing transactions with digital payments.
She said: “All payment will soon be made online using our cards. It is an airport card. You tap and go. It is a very seamless and straightforward process.”
Kuku explained that the pilot programme had already begun in Lagos, with plans for rollout across other airports, adding that the system will include ECR devices for terminal payments and automated parking and tollgate facilities.
Justifying the management’s plan to digitalize the authority’s payments, the industry expert said: “Automation makes it easier for you to track your payment. We’re going cashless and contactless payment. So it is easier and faster.” Kuku stated.
To enhance the FAAN’s operations and revenue generation, which stood at about N2 billion last year, the management said it was restructuring lease agreements following legal reviews to create more workable terms for service providers.
