TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
No Result
View All Result

Airports concession: FG must get it right – Punch

The Citizen by The Citizen
September 27 2017
in Public Affairs
A A
0
FG approves concession of Lagos, Abuja airports

A collage of Nigerian airports

The Federal Government’s decision to proceed with the concession of the Lagos and Abuja airports is a crucial step forward in revitalising the aviation sector. Four international airports — in Lagos, Abuja, Kano and Port Harcourt — are eventually to be placed on offer. This project should be pursued with both urgency and utmost caution to avoid past mistakes and deliver the benefits of a revamped aviation industry.

Vice-President Yemi Osinbajo and the Minister of State for Aviation, Hadi Sirika, confirmed President Muhammadu Buhari’s final approval to proceed with concessions for the Murtala Muhammed International Airport and the Nnamdi Azikwe International Airport. It provoked the usual opposition from public sector aviation workers who staged disruptive protests against the plan.

We remain steadfast in our total support for the liberalisation of all economic sectors and transfer of commercial assets to the private sector. We are guided by global trends and Nigeria’s sad experience in state control of businesses. Private sector lead — through privatisations, concessions, leases or public-private participation — is the only viable alternative to boosting productive activities, creating jobs and unleashing the full potential of Nigeria’s 180 million people, natural resources and investment draw.

The International Air Transport Association says that properly developed aviation industry contributes to the national economy by supporting hundreds of thousands of jobs, stimulating tourism and hospitality sub-sectors, facilitating skills and technology acquisition and projecting image. Airports are the fulcrum of the sector: typically incorporating runways, helipad, control towers, hangars, terminals, airport aprons, restaurants/shops, lounges and financial services outlets.

 

But Nigeria’s airports are national embarrassment. A controversial $500 million Chinese loan to revamp them failed. No Nigerian airport featured in Africa’s Top 10 in a 2016 survey, while three South African airports, Johannesburg, Cape Town and Durham, as well as Kigali in Rwanda made the list. Port Harcourt was once ranked the world’s worst international airport.

The argument for privatisation here is unassailable. Successive governments and managements have run virtually all state-owned enterprises aground. Nigerian National Shipping Line and Nigeria Airways are defunct; NAHCO, Sky Power Aviation survived only after being privatised. A former minister confessed that Ajaokuta Steel Company has cost the government over $10 billion and still counting, with very little production to show, while the Nigerian National Petroleum Corporation loses billions of dollars each year through fraud, loss-making refineries and idle facilities. We strongly urge the government to proceed with urgency, tact, transparency and honesty in the concessions. Nigerian government’s track record in concessions is dismal; often fraudulent and patently destructive. While the workers’ opposition to concessions must be overcome, the government must also address theirs and all other Nigerians’ hatred for rigged privatisations.

Airports are not only business entrepots and travel, tourism and hospitality hubs, they are also security zones. On no account should the concessions be undertaken through the all comers’ highest bidder route that had cost this country so dearly. The template has allowed incompetent emergency consortia formed by officials and their dodgy business partners to corner unbundled state assets. This ruined the power sector privatisation, caused the serial failure of NITEL auctions and faulty deals for Lagos International Trade Fair Complex and many others. Concessions for MMA 2 and airport toll gate are controversial with concessionaires filing debt claims and law suits against the Federal Airports Authority of Nigeria.

Rather, we suggest that international firms and consortia already operating the best airports around the world only should be invited with the terms and conditions clearly spelt out: emphasis should be on technical, financial and managerial competence. Only among such short-listed global players should highest bid feature. We insist that no Nigerian company today has the competence and ability to pull in the foreign direct investment and the technical expertise that our airports need to make them regional hubs and boost job creation. Airports are international businesses, not oil blocks.

Workers’ unions’ citing of national patrimony and security concerns is deceptive, uninformed and a base appeal to emotion. Stakeholders’ demand that the government spell out its plans in relation to control of control tower, navigational aids and runways is, however, timely. Concessions are usually given for terminals, parking lots and the business areas, while the state retains control of runways and security facilities. Britain has not compromised its national security or given out “national patrimony” by ceding control of London Gatwick Airport and London City Airport to Global Infrastructure Partners, a US-based consortium headed by Nigerian-born Bayo Ogunlesi. London Heathrow, Europe’s biggest, is operated by a consortium led by Ferovial of Spain and includes firms from China, Canada and Singapore. Saudi Arabia, the conservative Islamic kingdom, aims at complete privatisation of 23 airports by year end with European firms already winning bids. It has pegged stakes by Saudi nationals at maximum 25 per cent. Three European consortiums (from Germany, France and Switzerland) early this year won concessions to run four Brazilian state airports. India and Russia have also opened up to foreign operators. Canada in 1998-2000 divested control of all its major airports save for a few small ones.

Critical for success is how Nigeria makes and enforces the rules. Never again should we enter into lopsided agreements weighed heavily in favour of concessionaires. The agreements should be reasonable and safeguard Nigeria’s economic and security interests. Our concession law deserves a critical review while workers’ severance benefits should be given priority. The government should be prepared to implement all obligations it makes to avoid a repeat of the failed Nigeria-Virgin Atlantic deal.

Wisely, countries opting for privatisation and concession are not swayed by sentiments, but often look to Western and emergent Asian markets for tested partners with FDI, expertise, track record, skills and technology transfer in mind. We should follow this proven template. The National Council on Privatisation should expressly bar any official from interest in the concessionaires. FAAN should be reorganised, separating it from control of its 22 airports and restricting it to being a mere landlord with spartan staff.

Government should strengthen regulatory agencies, crush corruption in agencies like customs, immigration and security forces and leave the specialised business of running airports in private hands.

Previous Post

2019: Fayose to declare presidential ambition Thursday

Next Post

Record remittances – The Nation

Related Posts

Tele-robotic surgery: Nigeria needs more medical feats – Punch
Public Affairs

Tele-robotic surgery: Nigeria needs more medical feats – Punch

September 25 2026
2027: Voter registration figures must mirror turnout – Punch
Public Affairs

2027: Voter registration figures must mirror turnout – Punch

September 17 2026
EFCC recoveries: The good, the bad and the ugly – Punch
Public Affairs

EFCC recoveries: The good, the bad and the ugly – Punch

September 11 2026
Football’s house of failure – Punch
Public Affairs

Football’s house of failure – Punch

September 8 2026
FAAC shares N2.09tr to FG, states, local councils as October revenue
Public Affairs

FAAC bonanza: Nigeria’s fiscal paradox – Punch

September 3 2026
Interstate highways of agony, hollow excuses – Punch
Public Affairs

Interstate highways of agony, hollow excuses – Punch

September 1 2026
Next Post
JAMB extends UTME registration, postpones exams

Record remittances - The Nation

Zungeru power plant ready in 2020

The challenge of power supply - Thisday

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

FROM THE GRASSROOTS

Minister defends King’s College concession, cites infrastructure decay

Minister defends King’s College concession, cites infrastructure decay

by The Editor
September 16 2026
0

...

Lagos demolishes shanties after four die in community clash

Lagos demolishes shanties after four die in community clash

by The Editor
August 30 2026
0

...

Kano, Sokoto, others spend N53.2bn on scholarships abroad

INEC fixes Sept 19 for Kano Assembly by-election

by The Editor
August 27 2026
0

...

Awujale: Ruling House sues Ogun, kingmakers

Awujale: Ruling House sues Ogun, kingmakers

by The Editor
August 25 2026
0

...

APPOINTMENTS

Enugu governor names Nollywood’s Eucharia Anunobi, Rachael Okonkwo aides

Enugu governor names Nollywood’s Eucharia Anunobi, Rachael Okonkwo aides

by The Editor
September 23 2026
0

...

Gov. Yahaya swears in 19 new Gombe permanent secretaries

Gov. Yahaya swears in 19 new Gombe permanent secretaries

by The Editor
September 11 2026
0

...

Niger State governor appoints six commissioners-designate, four aides

Niger State governor appoints six commissioners-designate, four aides

by The Editor
September 8 2026
0

...

Tinubu swears in Enitan as new Head of Service

Tinubu swears in Enitan as new Head of Service

by The Editor
August 28 2026
0

...

ODDITIES

Residents find lifeless body in Akwa Ibom gutter, police begin probe

New co-tenant absconds with neighbour’s children in Akwa Ibom

by The Editor
September 17 2026
0

Palliatives: Sokoto residents feared dead in stampede at Wammako’s residence

Police Inspector slumps, dies after fitness exercise

by The Editor
September 3 2026
0

How friend deceived me to sell my kidney, bought phones with payment — Victim

How friend deceived me to sell my kidney, bought phones with payment — Victim

by The Editor
August 30 2026
0

GLOBAL NEWS

Gambia orders banks to replace foreign workers with locals

Gambia orders banks to replace foreign workers with locals

by The Editor
September 25 2026
0

...

Trump signs security deal with Greenland, Denmark at UN

Trump signs security deal with Greenland, Denmark at UN

by The Editor
September 23 2026
0

...

Trump bars CNN, MS NOW, Politico from White House

Trump bars CNN, MS NOW, Politico from White House

by The Editor
September 18 2026
0

...

2027 Hajj: Saudi Arabia rejects Nigeria’s request for additional slots

2027 Hajj: Saudi Arabia rejects Nigeria’s request for additional slots

by The Editor
September 17 2026
0

...

Canada flags Nigeria, 16 African countries as high-risk in new travel advisory

Canada raises study permit, visitor visa processing times for Nigerians

by The Editor
September 17 2026
0

...

State of the States

Auto Draft

Enugu Air opens international route to Cameroon, begins Enugu-Douala service

by The Editor
September 25 2026
0

...

I won’t be a godfather; Abia voters will pick my successor, says Gov. Otti

I won’t be a godfather; Abia voters will pick my successor, says Gov. Otti

by The Editor
September 17 2026
0

...

Fubara orders fresh LG elections in Rivers State

Fubara signs N1.84tt Rivers 2026 budget into law

by The Editor
September 3 2026
0

...

Lagos empowers 6,190 residents with free vocational, entrepreneurial skills

Lagos empowers 6,190 residents with free vocational, entrepreneurial skills

by The Editor
September 2 2026
0

...

Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
MT Asharami Ghana delivers 5,000MT LPG cargo to Ghana, boosts energy security, regional trade

MT Asharami Ghana delivers 5,000MT LPG cargo to Ghana, boosts energy security, regional trade

October 3 2026
Community leaders, scholars applaud Egbin Power’s scholarship programme

Community leaders, scholars applaud Egbin Power’s scholarship programme

October 2 2026

Nigeria advances research sovereignty as Health Ministry, NHIA, partners convene inaugural Health Financing Forum

September 28 2026
Candidate Sowore: Revolution, Marijuana and other stories

Candidate Sowore: Revolution, Marijuana and other stories

September 25 2026

EDITORIAL REVIEW

Tele-robotic surgery: Nigeria needs more medical feats – Punch

Tele-robotic surgery: Nigeria needs more medical feats – Punch

by The Editor
September 25 2026
0

2027: Voter registration figures must mirror turnout – Punch

2027: Voter registration figures must mirror turnout – Punch

by The Editor
September 17 2026
0

EFCC recoveries: The good, the bad and the ugly – Punch

EFCC recoveries: The good, the bad and the ugly – Punch

by The Editor
September 11 2026
0

Football’s house of failure – Punch

Football’s house of failure – Punch

by The Editor
September 8 2026
0

FAAC shares N2.09tr to FG, states, local councils as October revenue

FAAC bonanza: Nigeria’s fiscal paradox – Punch

by The Editor
September 3 2026
0

Opinion

Candidate Sowore: Revolution, Marijuana and other stories

Candidate Sowore: Revolution, Marijuana and other stories

by The Editor
September 25 2026
0

...

 Akpakomiza and other stories

by The Editor
September 1 2026
0

...

‘Fake’ Agency: Adeyemi insists DG appointment genuine

Fake agencies: Why Nigeria still needs Oronsaye report

by The Editor
August 25 2026
0

...

How Adeleke danced back from the dead

How Adeleke danced back from the dead

by The Editor
August 19 2026
0

...

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.

No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.