FAAN loses N17.5bn in 23 weeks

The Federal Airports Authority of Nigeria (FAAN) has said it lost N17.5 billion of aeronautic charges in 23 weeks and incurred N1.4 billion loss of non-aeronautic charges between April and June.
Hamisu Yadudu, the Managing Director of FAAN, made the disclosure during a virtual stakeholders’ session on Tuesday night, saying the agency’s internally generated revenue plunged by over 90 per cent in the last six months on account of the coronavirus crisis.
He observed that the agency had ensured that local airports under its management had begun domestic services after fulfilling the requirements set by the Presidential Task Force on COVID-19.
He stated that FAAN’s managers opened airports that were involved in evacuation flight arrangements during the lockdown period.
According to Yadudu, the move contributed to the agency’s incurring cost on maintenance and utilities in spite of slump in traffic and revenue.
“In spite of the drastic drop in revenue, FAAN has managed to ensure that all its local airports have commenced domestic operations having met the requirements by Presidential Task Force (PTF) on COVID-19, NCAA and other regulatory bodies and have been issued clearance to reopen.”
“Plans are also at advanced stage to ensure that the International Airports are set for re-opening on the 29th of August, 2020 as announced by the Minister of Aviation as we will be seeing during the course of this meeting. All these have come at a huge cost to the Authority with little or no cash inflow,” he said
Yadudu said the protocols deployed for the kick-off of international operations as guideline for ensuring that more than 1,280 international passengers are allowed on a daily basis would translate to lower revenue for the agency.
“The above automatically translates to fewer passengers and limited income even with the resumption of international operations.
“All these are issues of great concern to the authority and partly what has necessitated the need for all our stakeholders to rub minds on strategies to adopt to ensure that the industry remains in operation to provide the very much needed service.”
Nike Aboderin, the Director of Finance and Accounts at FAAN in her presentation entitled, “Ongoing COVID-19 and Implications on FAAN” disclosed that only 8.7 per cent of FAAN’s non-aeronautical revenue charges were collected from April to June compared to 2019.
She said FAAN’s customers were not only defaulting in their payment for services but there is a surge in request for payment, deferrals and waivers.
She also revealed that 87 per cent of 2020 budgeted overhead cost was wiped out in six months with up to 95 per cent fall in weekly revenues.