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FAAN loses over ₦17bn in weeks

Federal Airports Authority of Nigeria (FAAN) says it has lost over ₦17.5 billion of aeronautical charges in 23 weeks compared to 2019. This is just as the agency says 87% of 2020 budgeted overhead cost was completely wiped out in 6 months.

Director, Finance and Accounts, FAAN, Mrs. Adenike Aboderin who reeled out the figures at a virtual meeting with stakeholders said, there was also up to 95% decline in weekly revenues and from week 14 till date revenue loss had averaged 92%.

On non-aeronautical revenue, she explained that, from April to June 2020 compared to the same period in 2019 FAAN lost ₦1.4 billion.

The FAAN Director of Finance lamented that customers were increasingly defaulting on payment while there had been an increase in request for payment suspension, deferrals and waivers due to the crisis.

According to her, only 8.7% of non aeronautical revenue charges was collected from April to June compared to the same period in 2019.

From her statistics, revenue contribution by charges 72% was passenger related and 28% was from airline, aircraft related operations.

Mrs. Aboderin stressed that FAAN had considered the International Civil Aviation Organisation (ICAO) recommendations of cost relatedness which recommended that as a general principle users shall ultimately bear their full and fair share of the cost of providing the airport.

Nosa Aituamen

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