The Federal Airports Authority of Nigeria, FAAN, on Monday, said it is planning to increase the tariffs charged to service providers working at airports it manages across the country.
The announcement was made during a stakeholder forum organized by FAAN’s Directorate of Commercial Business Development (DCBD) in Lagos. At the event, FAAN also shared its intention to begin using a fully automated, contactless payment system at its airports soon.
According to the agency, this decision is driven by the fact that most of its revenue—around 92 percent—comes from aeronautical sources, with only eight percent coming from non-aeronautical streams. This financial imbalance has made it necessary for FAAN to find new ways to increase income while still providing quality services.
Adebola Agunbiade, Director of Commercial and Business Development at FAAN, noted that the proposed tariff increase would be done with care to avoid putting too much pressure on businesses.
She said, “We have to find the means to review our tariff in such a way that it is not too much on you (service providers) but it’s also helping us to pay our bills.” She added that notices would be sent early enough to help businesses prepare in advance.
Agunbiade also noted that the upcoming switch to digital payments would include a new airport card. With this card, payments can be made simply by tapping. “It is a very seamless and straightforward process that will ease business and payment structure for all our payment systems,” she explained.
She mentioned that FAAN earned N2 billion from what it calls “below the line” revenue channels last year, which shows strong potential for further investment. She urged investors to consider these areas, saying they provide good business opportunities.
Regarding lease agreements, Agunbiade said some terms had been updated to be more practical for businesses. She said changes were made to make the terms easier to understand and more workable for tenants. “We try our best to ensure that you will find terms that are doable. And they work,” she noted.
Also speaking at the event, FAAN’s Managing Director, Olubunmi Kuku, warned that licenses would be revoked from individuals posing as car hire or Bureau de Change operators while engaging in touting. According to her, this behavior creates safety and order issues at airport premises.
Kuku also noted efforts to reduce traffic congestion around Lagos Airport. She said tankers parked along airport access roads would soon be removed. “We cannot just have businesses on the side of the road in a manner that is not organised,” she said. “They are a security risk, and the scene is obnoxious for an airport environment.”
Speaking further on the digital changes, Kuku noted that going cashless would bring more transparency and efficiency to airport operations. “Automation makes it easier for you to track your payment. We are going cashless and contactless,” she said, adding that tollgates and parking systems were also being upgraded as part of this change.
