The over
N30 billion unfunded pension liability and the high indebtedness by
domestic and foreign airlines are adversely impacting on the finances of the
Federal Airports Authority of Nigeria (FAAN) and its ability to render
services and be self-sustaining, said Osita Chidoka, the Aviation
Minister on Tuesday.
Chidoka said the Authority’s major
problem was its finances, which had been depleted by companies that got
services from FAAN but refused to pay.
Speaking at an interactive session with
stakeholders in Lagos, he said: “Key issues confronting FAAN are
financial management where it has over N30 billion in pension
liabilities that are unfunded, airlines indebtedness to the agency,
which impacted its finances and limited its ability to be self
sustaining.”
Itemising other issues, Chidoka said
there that “are staff inefficiencies in Nigeria airports when compared
with other airports with similar size around the world. There are ageing
staff with very little competitive drive, as well as absence of long
term staff planning due to absence of long term business plan.”
He explained that some of the solutions
and interventions that had been made, were that the agency should be
transformed into airport management companies in clusters of airports
with a view to privatising the companies.
He added that there was the need to
reconcile the Civil Aviation Act and FAAN Act and include a phrase which
would clearly state that penalties arising from any violation or
offence to the FAAN Act are to be set and approved by the Nigerian Civil
Aviation Authority (NCAA).
“We’ve set up committee to look at
charges to align them with competition; a procurement process for the
development of Master-plan for Nigeria’s airports has commenced, review
of airports’ remodelling project by independent quantity surveyors;
tracking of staff on customer service; introducing performance
management apart from refocusing of Aerotropolis project by injecting
greater transparency”, he said.
Osita, who said that almost the same
issues were limiting the services and sustainability of the NCAA, added
that the regulatory agency’s control by the Ministry of Aviation was a
bigger problem for NCAA, explaining that it was conflicting with the
agency’s regulatory prerogative. “NCAA has both economic and safety
oversight functions, which are conflict of interest, apart from
airlines’ indebtedness which is limiting its sustainability,” he added.
Sade Williams
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