The Federal Airports Authority of Nigeria (FAAN) has made move to plug leakage in its system by promoting cashless policy.
The managing director of FAAN, Capt. Rabiu Yadudu, stated this recently when the House of Representatives Committee on Aviation embarked on a tour of the agency’s facilities at the Lagos Airport as part of its oversight function.
He said the policy would optimise the agency’s revenue generation, collection as well as reduce cost and promote efficiency.
He also stated that FAAN had, in recent time, taken critical steps to improve revenue generation and curb spending.
He listed some of the measures to include the suspension of procurement of non- essential items, reduction in all staff related costs to the barest minimum and aggressive debt recovery drive, which he said was hampered by the outbreak of the coronavirus disease.
Others include are plugging of revenue loopholes, cash and fly policy, promotion and enforcement of cashless policy and the continuous strengthening of business and operational excellence by improving on people, processes, platforms and performances.
“In keeping with our vision and mission, we have strategically positioned ourselves to ensure that we have modern and up-to-date high-tech equipment and facilities that will aid better security, safety and comfort of all stakeholders.
“I will like to say that aviation business is a global, technical and highly regulated with huge infrastructure requirements; furthermore, it is necessary to reiterate that aviation business is driven by volumes and turnaround with operating profit margin of between 2.5 per cent to 5 per cent. Without the required volumes and traffic, it will be difficult to break even.
“The aviation agencies will urgently need intervention fund from the federal government to address infrastructural gaps and position the industry for better service delivery and contribution to the national economy.”
He furthers said the new terminal building at the international wing of the Murtala Muhammed Airport (MMA), currently under construction by the China Civil Engineering Construction Corporation (CCECC) would be commissioned in February 2021.
He said the terminal would have been completed this month (December), but the outbreak of Covid-19 pandemic put paid to its delivery.
In his remarks, the committee’s chairman, Mr. Mr. Nnolim Nnaji, commended lauded FAAN for steps taken so far to improve services for airlines, air travellers and other airport users nationwide.
Nnaji, emphasised that there had been some improvements in the facilities at the airports in the last one year despite the challenges of 2020 and charged FAAN to invest more on safety and security infrastructure.
“The worst we had was the COVID-19 pandemic. We are happy that the industry is coming back. As you can see, a lot of things were abandoned…and now, contractors are coming back to site.
“Last year, we noticed that there was no connection between the old and the new terminal, but today, as you can see, they have done the connection. What the managing director of FAAN said is that by February 2021, they will open up the corridor for passengers to use. We are impressed with FAAN.
“Last year, there was no apron…but we now have it. It goes to show that FAAN is working and moving forward. We are happy with FAAN and we are ready to support the industry to move forward.
“We as a committee advised FAAN that they must concentrate on critical infrastructure to save the industry. Safety and security are very key for the industry.
“In moving forward, most of the things that we will like to see in the budget would be something linked to security and safety like operational and perimeter fences, airfield lightings, runways and others. These are the things that will improve on safety and security of the industry,” he added.
