The Managing Director of the Federal Airports Authority of Nigeria, Olubunmi Kuku, has revealed that only three of the 22 airports under FAAN’s management are profitable, significantly contributing to the growth of the aviation sector.
Speaking on Channels TV’s morning show on Tuesday, Kuku stated that 19 of FAAN’s airports are subsidized due to insufficient passenger traffic to cover their operational costs.
Kuku highlighted the need for maintenance and upgrades across most of the 22 airports managed by FAAN, focusing on critical infrastructure such as terminal areas, the landside, and the airside.
This aligns with findings from The PUNCH, which show that only four out of over 30 airports in Nigeria are economically viable, contributing N5.57 trillion to foreign trade over 51 months.
These four airports—Nnamdi Azikiwe International Airport, Muritala Mohammed Airport, Kano, and Port Harcourt—accounted for N529.68 billion in total exports and N5.05 trillion in imports from January 2020 to March 2024. Despite various state governments planning new airport constructions to attract trade, most airports remain economically unviable for supporting foreign trade.
In her interview, Kuku mentioned FAAN’s plans to provide cross-subsidies to certain new airports under development.
“I started by saying that we have 22 airports which we own and manage,” Kuku said. “We also have about six or seven airports that are either owned by state governments or private individuals or entities, which we also support with either aviation security or fire and rescue services. We have several states in the north as well as in the southwest that are coming up with new airports. I would say that based on the stats today, only three of the 22 airports are actually profitable and contribute largely to the sustenance of the airport companies that we run.”
Kuku also noted that FAAN is currently cross-subsidizing 19 airports and will likely do the same for some of the new airports under development.
She pointed out that FAAN allocates 50 percent of its revenue to the federal government, creating significant financial challenges. The authority is in discussions with various government branches to explore potential relief measures.
According to Kuku, passenger traffic is more closely linked to GDP growth and economic activities than to the construction of new airports. She stressed the importance of prioritizing activities such as trade, manufacturing, and tourism to increase airport traffic.
“Rather than building new airports, we need to look at the bottom of the value chain to determine what activities can drive traffic into these airports,” Kuku said.
FAAN is working with international organizations like the International Air Transport Association and the Federal Ministry of Aviation to enhance both domestic and international route expansions.
Kuku mentioned ongoing initiatives aimed at transforming specific Nigerian airports into transit hubs, building a network to utilize airports more effectively.
Currently, nearly four million passengers travel internationally from Nigeria, highlighting the need for efficient infrastructure utilization to maintain and improve facilities.
However, state airports’ contribution to foreign trade remains minimal compared to other transportation means.
According to the National Bureau of Statistics’ Foreign Trade Statistics report, the aviation sector facilitated N5.57 trillion in trade from January 2020 to March 2024, significantly less than the N173.4 trillion contributed by the Apapa port during the same period.
A detailed breakdown shows that N331.82 billion worth of goods were exported, N197.86 billion re-exported, and N5.04 trillion imported via the airports.
Murtala Mohammed Airport in Lagos State led with N2.59 trillion in trade transactions, followed by Nnamdi Azikwe Airport in Abuja with N740.75 billion. Mallam Aminu Kano International Airport and Port Harcourt International Airport recorded N743 billion and N112.38 billion, respectively.
Non-viable airports include Asaba Airport, Akwa Ibom Airport, Bayelsa International Airport, MKO Abiola International Airport, Ekiti Cargo Airport, Anambra Cargo Airport, Abia Airport, Wachakal Airport, and several others.
