Federal Airports Authority of Nigeria (FAAN) Presentation by Mr. R. Aisuebeogun MD/CEO.
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Transcript of Federal Airports Authority of Nigeria (FAAN) Presentation by Mr. R. Aisuebeogun MD/CEO.
Federal Airports Authority of Nigeria (FAAN)
www.faannigeria.org
Presentation by
Mr. R. Aisuebeogun
MD/CEO
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...
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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 Gandhi3
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.
4
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 purposes5
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 6
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:
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Current Status
Lagos Region
S/n Airport Category
1 MMIA, Lagos International
2 Ibadan Airport Domestic
3 Ilorin Airport Domestic
4 Akure Airport Domestic
5 Benin Airport Domestic
Current Status -contd.
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Abuja Region
S/n Airport Category
1 NAIA, Abuja International
2 Kaduna Airport (including Zaria Aerodrome)
Major Domestic
3 Minna Airport Domestic
4 Jos Airport (& Bauchi Airstrip) Domestic
5 Makurdi Domestic
Kano Region
S/n Airport Category
1 MAKIA, Kano International
2 Maiduguri Airport Major Domestic
3 Yola Airport Major Domestic
4 SA A, Sokoto Major Domestic
5 Katsina Airport Domestic
Current Status
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Current Status -contd.
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Port Harcourt Region
S/n Airport Category
1 PHIA, Port Harcourt International
2 Enugu Airport Major Domestic
3 MEIA, Calabar Major Domestic
4 SMICA, Owerri Domestic
5 *Osubi Airport Domestic
*Osubi Airport is managed by Shell
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.
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Aviation Statistics (2001-2007) -cont’d
YR PAX AIRCRAFT CARGO* MAIL*
2001 5.22m .13m 45.19m 11.35m
2002 6.05m .14m 52.55m 2.92m
2003 7.13m .17m 65.12m 5.86m
2004 8.14m .20m 71.81m 12.63m
2005 8.31m .19m 106.72m 19.84m
2006 8.08m .18m 105.86m 19.82m
2007 8.41m .18m 103.85m 34.12m
* Weight in Kg20
Our Contribution to Nigerian Economy2001-2007
YR AERO (N) NON-AERO.(N) TOTAL (N)
‘01 5.76bn (81%) 1.38bn (19%) 7.14bn
‘02 7.18bn (85%) 1.23bn (15%) 8.4bn
‘03 9.30bn (85%) 1.67bn (15%) 10.98bn
‘04 10.34bn (75%) 3.49bn (25%) 13.83bn
‘05 11.27bn (75%) 3.73bn (25%) 15.00bn
‘06 12.14bn (78%) 3.37bn (22%) 15.51bn
07 12.70bn (81%) 2.99bn (19%) 15.69bn
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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
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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
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Focus – MediumTerm
• Infrastructural improvement.• Improvement in fire and Safety
management at all airports.• Create incentives for Private-Public
Partnerships• Increased Non-Aero Revenue
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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,etc27
Revenue Sources PerformanceJAN-DEC ‘07
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SOURCESGEN-
ERATED
COLL-ECTED.
BAL-ANCE
VAR
Aeronautical 12.71bn 11.02bn (1.68bn) (15.25)%Non-Aeronautical
2.98bn 2.518bn(0.47bn) (18.47)%
TOTAL15.69bn
13.54bn (2.15)bn (15.85)%
REVENUEBUDGET Vs ACTUAL FOR JAN. – DEC. ‘07
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REV. HEADS
BUD-GET
GEN-ERATED.
BAL-ANCE.
VAR.
Revenue 18 15.69 (2.31) (14.75%)
FGN Appropriated Fund
9.93 (9.94) (0.00%)
TOTAL 27.94 15.69 (12.24) (78.10%)
All Revenue in Billion Naira
EXPENDITUREBUDGET Vs ACTUAL FOR JAN. – DEC. ‘07
EXP. HEADSBUDGET
(bn)ACTUAL
(bn)BAL. (bn)
VAR (%)
Personnel 7.54 6.14 1.41 (4.82)
Overheads 6.74 6.41 0.33 (5.15)
Capital Projs. (IGR)&Debts
3.72
2.71 1.01
(37.18)
Appr.Capital Projects
9.94 *** (0.00)
TOTAL 27.94 15.26 2.75 (71.08)31 *** - Enbloc deduction by AGF
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.
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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.
33
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;
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2008 Budget Focus -contd.
Improvement in automation and information technology;
Improvement in Human Resource Management and effectiveness for efficiency.
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BUDGETED REVENUE 2008
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Head Amount
i IGR
Aero. 17.52bn
Non. Aero. 6.48bn
24.00bn
ii FGN Appro. (MTSS) 1.40bn
TOTAL 25.40 bn
BUDGETED EXPENDITURE 2008
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Head Amount
i Personnel 8.17bn
ii Overheads * 7.07bn
iiiIGR Capt. Proj., Capt. Debts.,Safe Tower Loan
8.76bn
iv FGN Appro. Capt Projects 1.40bn
TOTAL 25.40 bn
*The Overhead costs include contribution of 5% landing fees to NIMET and operating surplus to FGN.
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.
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INCOME PROFILE
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2007** 2006** 2005* 2004*
Aeronautical Sources
11.26bn
10.14bn
9.60bn
9.68bn
Non-Aeronautical
4.43bn 5.35bn 5.66bn 4.85bnSub-Total 15.69bn15.49bn 15.29bn 14.43bn
* - Audited**- Un-Audited
EXPENDITURE PROFILE
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2007** 2006** 2005* 2004*Staff Cost 7.25bn 9.36bn 6.79bn 6.34bn Power & Fuel 1.13bn 1.40bn 1.46bn 1.27bn Repairs & Maint. 1.64bn 2.71bn 2.25bn 2.11bn Other Op. Cost 6.18bn 5.87bn 4.31bn 3.81bnFinancial Charges 0.01bn 0.01bn - 0.02bnTotal 16.21bn19.35bn 14.81bn 13.55bn
* - Audited **- Un-Audited
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
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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 SMICA45
ProjectCost (bn)
Amt Cert.(bn)
Status
Runway Resurfacing
3.56 1.78 70%
Cargo Apron Expansion
0.85 0.43 20%
Water Supply 0.30Awaiting
FECapproval
Power Project 0.17 0.07
MMIA PROJECT HIGHLIGHTS
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ProjectCost (bn)
Amt Cert. (bn)
StatusComplet-ion Date
Runway Overlay
3.00 2.28 bn 90%
AFL Cat III. 0.92 0.46 bn 0%
Apron Expansion
0.54 Awaiting
FECapproval
Power Improv.
0.74 0.362bn “
PHIA PROJECT HIGHLIGHTS
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Project CostAmt Cert.
StatusCompletion
Date
Domestic Terminal Building Completion
762.7m 547.7m 75%
MAKIA PROJECT HIGHLIGHTS
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Project Cost Amt Cert. Status
Runway resurfacing, Expansion and Extension
6bn Tendering
Airfield Lighting CAT II
960m Tendering
ENUGU AIRPORT PROJECT HIGHLIGHTS
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Project CostAmt Cert.
Status
Runway resurfacing
3bn Tendering
Airfield Lighting CAT II
960m Tendering
KADUNA AIRPORT PROJECT HIGHLIGHTS
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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
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Challenges -cont’d
Funding of mandatory programs for Fire, AVSEC and Operations staff for airport certification.
Funding Pensions Liability gap of about N30bn.
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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: -
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Opportunities -cont’d
Construction and management of terminal building; already, Bi-Courtney and Associates has started the operation of the first Build Operate and Transfer (BOT) MMA Domestic Terminal 1.
Construction of Runways, taxiways and aprons;
Construction and management of helipads. Construction and management of
Independent Power Plants (IPP)
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Opportunities -Cont’d
PROPOSED PROJECTS
PROPOSED LOCATION
Hotel/Holiday Inns /Resort Centres
Lagos, Abuja, Bauchi, Jos, Port Harcourt, Owerri, Calabar, Ilorin
Cargo complex/Warehousing
Calabar, Lagos, Kano, Abuja, Port Harcourt, Akure, Yola, Jos, Owerri, Ilorin
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Opportunities -Cont’d
PROPOSED PROJECTS
PROPOSED LOCATION
Duty Free Shops Lagos, Kano, Port Harcourt, Abuja, Calabar
Aviation Fuel Depots Abuja, Kano, Port Harcourt
Water Bottling Plants Jos, Kaduna, Abuja, Akure
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Opportunities -Cont’d
PROPOSED PROJECTS
PROPOSED LOCATION
Interline Offices Lagos, Kano, Port Harcourt, Abuja, Calabar
Cold Storage facilities Jos, Yola, Owerri, Lagos, Abuja, Kaduna, Ilorin
Shopping malls Kano, Ibadan, Lagos, Yola, Abuja, Port Harcourt
59
Opportunities -Cont’d
PROPOSED PROJECTS
PROPOSED LOCATION
Avio-bridges Lagos,PortHarcourt,Abuja
Independent Power Projects
Lagos, Abuja, Port Harcourt, Kano
Hangars(Aircraft maintenance facility) / FBO’s
Lagos, Abuja, Ilorin, Ibadan, Maiduguri, Port Harcourt, Kaduna
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Opportunities -Cont’d
PROPOSED PROJECTS
PROPOSED LOCATION
In-flight catering complexes
Kano, Abuja, Lagos, Port Harcourt
Airport Advertising All Airports
Cargo Management Lagos, Abuja, ,Kano, Ilorin,Calabar, Port Harcourt
Car Park: Development and Management
All Airports61
PROPOSED PROJECTS
PROPOSED LOCATION
Petrol Stations Port Harcourt, Abuja, Ibadan, Ilorin, Akure
Fish/Agric Farms All Airports
Housing Estate/Amusement Park/Conference Centre
All Airports
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Opportunities -Cont’d
Opportunities -Cont’d
PROPOSED PROJECTS
PROPOSED LOCATION
Multipurpose Hall Enugu, Minna, Abuja,PortHarcourt,Lagos
Public Gallery Murtala Mohammed Airport, Lagos
Internet Café / Cyber Café
Lagos, Port Harcourt, Abuja, Kano, Owerri, Enugu, Calabar
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Opportunities -Cont’d
PROPOSED PROJECTS
PROPOSED LOCATION
Tourist attractions All Airports
Surface/ground transportation (taxis,shuttle buses, trucks, train, etc.)
All Airports
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10 Reasons why you should do business with FAAN
The ratio of Aeronautical revenue to Non Aeronautical revenue in the sector is still about 85:15, whilst world over Non-Aero revenue is averages 50%, hence there is great scope for growth.
There is a direct linkage between economic prosperity, population growth and airport/airline/tourism activities.
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10 Reasons why you should do business with FAAN -cont’d
A number of indices can make FAAN and, by extension, tourism attractive and flourishing. Investors will find the new improved airports and Nigeria generally a haven for the following reasons:-
Stable democratic government High population (Over 140 million people) Diversified economy (farming, mining,
manufacturing etc.)
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10 Reasons why you should do business with FAAN -cont’d
Diverse and rich cultural heritage Potentially popular tourist destinations, a
country of scenic beauty with airport connections e.g. in Cross River, Bauchi, Kwara, Osun, Plateau,Taraba and Adamawa states.
Good export potential in Agricultural produce and Solid Minerals (cargo)
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10 Reasons why you should do business with FAAN -cont’d
The Government’s current support for growth in aviation and tourism industries is a tonic;
Huge investment potential in all facts of the economy;
Friendly populace. World-class hotels/restaurants are available
everywhere in Nigeria.
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Aircraft Parking Charges
Country Airport Charge ($US)
Ghana Accra 0.15 per ton/hr 1st hr Free,
Egypt Cairo 17per/hr
CoteD’voire Abidjan 0.06per ton/hr
UAE Dubai 0.75 per/day
Nigeria Lagos 0.14 per ton/hr
Cameroon Douala 0.2728per ton/hr
S.Africa J’borg 139.76 per day70
Passenger Service Charge
Country Airport Int’l ($US) Dom (Naira)
Egypt Cairo 12.86 N/A
Ghana Accra 50.00 12.57 ($0.0977)
Cote D’voire Abidjan 23.38 754 ($5.86)
Nigeria Lagos 35.00 350 ($2.72)
S. Africa J’Burg 18.44 814.5 ($6.33)
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