John Ogbe, an aviation professional at the Air Cargo Unit of FAAN and member of the Federal Government’s Airport Concession Committee, explains the rationale, concerns, and implications of airport concession through Public-Private Partnerships (PPP) in Nigeria.
1. Initial Opposition and Changing Stance
- For the past eight years, unions and stakeholders were firmly against airport concessions.
- Ogbe notes that government funding to upgrade airports is insufficient, and global aviation standards demand modernisation.
- Concession via PPP is increasingly seen as the practical solution for improving infrastructure, provided workers’ welfare and labour issues are addressed.
2. Public-Private Partnership (PPP) and Staff Concerns
- Concessions have been proposed for airports like Enugu, Ibadan, Minna, and Port Harcourt.
- FAAN staff are employed by the authority, not individual airports, meaning pensions, liabilities, and assets are pooled.
- Workers demand resolution of pension issues before concessions proceed, particularly given FAAN’s dual pension schemes (defined benefit and contributory schemes).
3. Proposed Approach for Concessions
Ogbe highlights three key demands for a smooth transition:
- Cluster Concession: Large airport concessionaires take over nearby smaller airports to manage assets and liabilities effectively.
- Full Severance or Valuation: Staff should have clear options—continue with FAAN or transfer to the concessionaire—with workforce valuation around ₦1.21 billion ensuring fair treatment.
- Revenue Sharing & Oversight: FAAN continues to exist post-concession, overseeing KPIs and revenue-sharing with concession operators.
4. Pitfalls to Avoid
- Concession periods depend on investment recovery and negotiation, not arbitrary timelines.
- Past failed concessions were often due to lack of goodwill and unfair structuring.
- The creation of the Infrastructure Concession Regulatory Commission (ICRC) ensures end-to-end oversight and reduces disputes.
- Active engagement with unions and stakeholders is critical to ensure fair processes beyond labour issues.
5. Conclusion: FAAN’s Role Post-Concession
- FAAN will remain an active authority, supervising concessions and ensuring airports meet Key Performance Indicators (KPIs).
- Properly structured PPPs can bridge Nigeria’s infrastructure gap without compromising workers’ rights, making concessions a viable strategy for modernising aviation infrastructure.
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