… Stakeholders air their views
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| MMIA, Lagos |
The Federal Government of
Nigeria announced in early this year the plan to put four major airports (Murtala
Muhammed International Airport, Lagos; Mallam Aminu Kano International Airport,
Kano; Port Harcourt International Airport, Port Harcourt and Nnamdi Azikiwe
International Airport, Abuja) in Nigeria up for Concession. Most stakeholders
in the aviation industry have given their nods to this decision. It is pertinent
to state that the airports are for Concession
not Privatisation as some quarters
in the industry have misconstrued.
According to Wisegeek, the
term “Concession Agreement” is used
in two slightly different ways in the business world. Both refer to a type of
negotiated contract which gives a company the right to do business, with some
specific requirements. In one sense, it refers to a contract between a foreign
company and a government, in which the company signs a concession agreement so
that it can do business in that government's country. In a second sense, this
type of agreement is one which grants the concessionaire the exclusive right to
do business in a particular area or venue in exchange for some carefully
negotiated terms.
While Privatisation on other hand, according to Investopedia can refer to
the act of transferring ownership of specified property or business operations
from a government organization to a privately owned entity, as well as the
transition of ownership from a publicly traded, or owned, company to a
privately owned company. For a company to be considered privately owned, it cannot
secure funding through public trades on a stock exchange.
The Concession is what
Federal Government is working towards for better productivity of the airports
involved. Below are views of some of the stakeholders in Nigeria’s aviation
sector concerning the proposed Concession of the airports:
“It’s important to clarify
that Federal Government goal based on policy state announced in May was to
concession rather than privatise four major airports been Lagos, Abuja, Port
Harcourt and Kano. The missing part of the puzzle is the fact that Government
did not justify the rationale for picking these four airports, nor highlight
the concession model, neither is there an awareness and communication platform
for stakeholders and FAAN staff. However, the commercialisation and
privatisation of Nigerian airports is long overdue in my opinion. This process
will definitely improve efficiency, increase revenue and promote a safe,
secured and commercially viable airport system. Coincidentally, government
currently does not have the funds to manage airports, hence the need to partner
with a global Airport Management Company that will ensure appropriate
infrastructure that will enhance passenger travel experience.
Do I think this decision is ripe for the
country?
I reckon this is the
appropriate time as there are paucity of funds from government. Looking back
when airlines were liberalised in 1978 or when BAA airports were privatised in
1987 there is never a perfect time, the pertinent thing is to ensure that the
process is transparent and reputable organisations are engaged with the task of
managing these airports. This process will certainly take away the daily
management and operations away from frequent government interference. A
properly concessioned airport system will improve the airport ambiance, provide
attractive food and beverage outlets and expand other ancillary services which
would invariably increase non-aeronautical revenue” - Tayo Ojuri, CEO Aglow Aviation
“Concessioning is
scratching the problem on the surface. I am for more than concession to
outright privatization.
Telecomm, Banking, Airlines,
and so on have been privatized and the
merits are obvious in the market. Airports should. Lessons learnt from the case
study of Bi-courtney and few others should come handy.
Nigeria require 3 to 4
Airport companies of Nigeria( ACN ) to bring an end to the inefficient
government monopoly called FAAN. To meet the people's sentiment, privatization process should proceed along
geopolitical zones”-Gabriel Olowo,
President Aviation Round Table (ART)
“In favour of concession,
but under some restrictions”-Norbert
Bielderman, Managing Director/CEO Nigerian Aviation Handling Co Plc,
“They should come out with
a tender soon, it could be a good thing to improve facilities and bring in new
investments”-Jacky Hathiramani, MD/CEO Dana
Group
“I think it's a good idea
if it will be done properly and there will be capital injection requirements
for the operators.
The concession operators
should have the financial means to upgrade the airports and the know how to run
a modern airport.
It should not be a case
where the airports (Terminals and airside) are given out in the terrible state
they are in and the government takes some money and the operator continues to
make use of the facilities as they are.”-Yemi
Dada MD IRS Airlines
“There is no other option
but to concession the airports”-Captain
Daniel Omale, CEO Prime Air
“Very good, it is a welcome
idea”-Alhaji Muhammed Tukur
“My personal view is that
we need the airports to be concessioned to a reputable airports operator -
preferably foreign as they have experience of running airports profitably and
with good service standards which is the most lacking in Nigeria today”-Anonymous
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