Federal Airports Authority of Nigeria (FAAN) faannigeria

1. Federal Airports Authority of Nigeria (FAAN) www.faannigeria.org Presentation by Mr. R. Aisuebeogun MD/CEO

2. INTRODUCTION Federal Airports Authority of Nigeria (FAAN) was established in 1996 to develop, provide and maintain at airports all necessary services and facilities for the safe, orderly, expeditious and economic operation of air transport, amongst other functions. At FAAN Safety and Security is the watchword and we operate from the premise that...

3. INTRODUCTION -contd. “A customer (the flying public) is the most important visitor on our premises (Airports), he is not dependent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favour by serving him. He is doing us a favour by giving us an opportunity to do so.” Mahatma Gandhi

4. OUR VISION • OUR VISION • To be amongst the best airport groups in the world • OUR MISSION • To develop and profitably manage customer-centric airport facilities for safe, secure and efficient carriage of passengers and goods at world-class standards of quality.

5. Statutory Functions • To develop, provide and maintain at airports all necessary services and facilities for the safe, orderly, expeditious and economic operation of air transport • To provide adequate facilities and personnel for effective security at all airports • To provide conducive environment under which passengers and goods would be carried by air and under which aircraft would be used for gainful purposes

6. Statutory Functions -contd. • To provide accommodation and other facilities for effective handling of passengers and freight • To develop and provide facilities for surface transportation at Airports • Carrying out, at airports, such economic activities that are relevant to air transportation and other commercial activities, which are not relevant to air transportation, but which may be carried out without prejudice to its other functions

7. Current Status There are 21 airports under the management of FAAN, categorised into International, Major Domestic and Domestic. The airports in each of the categories operate for 24 hrs, 18 hrs and 10 hrs respectively. The airports are now to be managed regionally viz:

8. MURTALA MUHAMMED AIRPORT(The Flagship of FAAN)

9. Current Status

10. Current Status -contd. NNAMDI AZIKIWE INT’L AIRPORT, ABUJA

11. Current Status -contd.

12. Kaduna Airport

13. Current Status

14. KANO AIPORT KANO AIRPORT TERMINAL BUILDING

15. Current Status -contd. *Osubi Airport is managed by Shell

16. Port Harcourt International

17. PHIA – Domestic Terminal

19. Aviation Statistics (2001-2007) The following presents the aviation statistics as recorded by FAAN over the period 2001 till 2007. The area of Airport Operation Information is to be bolstered by the introduction of our ultra modern robust Airport Operations Database (AODB) with an Electronic Data Capture/Interchange module.

20. Aviation Statistics (2001-2007) -cont’d * Weight in Kg

21. Our Contribution to Nigerian Economy2001-2007

22. Focus – Short Term • Sustained and continuous debt recovery • Sustained and continuous fund management • Full Automation of the four International Airports for improved and efficient revenue generation • Improved relationship with all stake holders • Revamp the Airport and its environs thus ensuring clean and comfortable travel experience

23. Focus – Short Term -contd. • Rehabilitation of PHIA,MMA Runway 18L and MAKIA Domestic Terminal. • ICAO and FAA Category 1 certification for MMA • Improved service delivery to the travelling public & our clients • Training and retraining of staff on mandatory programs for airport certification

24. Degreasing of Apron at MMA 25

25. Focus – MediumTerm • Infrastructural improvement. • Improvement in fire and Safety management at all airports. • Create incentives for Private-Public Partnerships • Increased Non-Aero Revenue

26. Focus – LongTerm • To make all the Airports under FAAN Management viable. • Automation and integration of all airports with Headquarters. • Seamless communication • Expansion of infrastructure provision • Acquisition of long-term financial facility from Developmental Banks. E.g. ADB,etc

27. Revenue Sources PerformanceJAN-DEC ‘07

28. REVENUEBUDGET Vs ACTUAL FOR JAN. – DEC. ‘07 All Revenue in Billion Naira

29. EXPENDITUREBUDGET Vs ACTUAL FOR JAN. – DEC. ‘07 *** - Enbloc deduction by AGF

30. Performance Summary -contd. • We budgeted a total revenue of N18bn from IGR and N9.936bn as anticipated FGN Appropriation, totalling N27.936bn. • As at end of the year, Total IGR was N16.329bn, i.e (71.08%) of Budgetted Expenditure.

31. Performance Summary -contd. • The shortfall on revenue generation is due to: Revocation of licenses of some Airlines due to non-compliance of NCAA Regulations. Commencement of operations at BOT Terminal Grounding of aircraft in the Airlines’ fleet due to none airworthiness.

32. 2008 Budget Focus • Upgrading, renewal and maintenance of the Runways, Perimeter Fences, Terminal buildings and other infrastructures and equipments so as to improve the Airports’ efficiency, capacity utilization and also attain the ICAO standards. • Improvement in safety, security, facilitation, fire fighting and prevention measures;

33. 2008 Budget Focus -contd. • Improvement in automation and information technology; • Improvement in Human Resource Management and effectiveness for efficiency.

34. BUDGETED REVENUE 2008

35. BUDGETED EXPENDITURE 2008 *The Overhead costs include contribution of 5% landing fees to NIMET and operating surplus to FGN.

36. Financial Statements The set of accounts for year’s 2007 and 2006 are yet to be audited, but we have a fully audited report for 2004 and 2005 as presented here.

37. INCOME PROFILE * - Audited **- Un-Audited

38. EXPENDITURE PROFILE * - Audited **- Un-Audited

39. PROJECT HIGHLIGHTS There are over 180 projects on-going at various stages of completion across the Airports. We have been striving to meet-up with our payments as much as we can while prioritising in the light of the Budgetary constraints

40. PROJECTS HIGHLIGHTS • Resurfacing of MMIA Domestic Runway • CARGO Apron expansion at MMIA • Water Supply Improvement at MMIA • New Domestic Terminal at MAKIA • PHIA Terminal Rehabilitation, Apron Expansion, Runway Resurfacing and Power Improvement • Procurement of 20 Fire Tenders • Cat II AFL Installation at SMICA

41. MMIA PROJECT HIGHLIGHTS

42. MMA Runway 18/L undergoing resurfacing 47

43. PHIA PROJECT HIGHLIGHTS

44. MAKIA PROJECT HIGHLIGHTS

45. ENUGU AIRPORT PROJECT HIGHLIGHTS

46. KADUNA AIRPORT PROJECT HIGHLIGHTS

47. CHALLENGES • Decayed and decaying Airport Infrastructure • Crippling Indebtedness to Contractors. • Rising Debt profile of Government Agencies and Airlines to FAAN • Appropriate & Right Staffing • High Wage-Revenue Ratio • Dwindling Revenues • High rate of Litigation and its attendant cost. • Uncompleted Projects

48. Challenges -cont’d • Funding of mandatory programs for Fire, AVSEC and Operations staff for airport certification. • Funding Pensions Liability gap of about N30bn.

49. Opportunities

50. Opportunities Investment opportunities abound in Nigeria airports for both local and foreign investors. The scope for growth is vast, especially in the non-aero sector as seen in the ratio of Aero to Non-aero revenue which is 85:15 Most airports worldwide generate up to 50% of their revenue from Non-Aero Sources. Investment in Airports infrastructural facilities top list of such opportunities as listed below: -