PASSENGERS MAY PAY LEVIES FOR AIRPORT UPGRADES – FAAN

As the federal government increases investment in infrastructure upgrade in the country’s airports, passengers will be compelled to pay some levies for government to recoup its investment.
Managing Director of the Federal Airports Authority of Nigeria (FAAN), Mr. George Uriesi who disclosed this, further said government  is investing additional US$870 million about (N139 billion) on airport infrastructure upgrade.
He disclosed this in a paper he delivered on ‘Airport Regulation, from the Africa Perspective’ at the Airport Council International (ACI) conference and exhibition held in Lome, Togo recently.
Uriesi said some measures will be introduced to recoup the huge investment in the industry when the projects are completed.
Nigeria, he said, is “investing in airport infrastructure without a corresponding airport development levy but I can’t guarantee that we will not put a small development levy.”
He noted in his paper that many countries are investing in airport infrastructure even though they don’t necessary have the passenger figures to gain returns for investment but that Nigeria has sufficient traffic and commerce potentials.
He noted that Togo with a figure of 472,000 passengers is currently investing $150 million while Zambia with 136 million passengers was investing about US$460 million and a green field of $500 million.
Uriesi said that apart from Egypt and South Africa that have over 30 million passengers annually only eight African countries have a total passenger figure of above 7 million.
He further said that in the context of 43 African countries, only five have above 10 million passengers while three have seven million, eight of those countries have between one and two million passengers.
 With this, he said passenger traffic in Africa is not enough to provide the funds for airport development.
He further explained that this may have led governments of other countries including Tunisia, Mozambique, Togo, Tanzania and Senegal to also invest heavy funds to ensure rapid development in their airports.


Daily trust