FG concession Abuja, Kano airports for 5Oyears, renames Aviation Ministry

The Federal Government has concession the Nnamdi Azikiwe International Airport (NAIA), Abuja and Mallam Aminu Kano International Airport (MAKIA),Kano for 50 years

A statement by Dr. James Odaudu, the Special Assistant on Public Affairs to Sen. Hadi Sirika, the Minister of Aviation,said the two airports were concession to the Corporacion American Airport Consortium in line with all the laid down rules and regulations.

According to him,while Abuja Airport was concession for 20 years, Kano Airport was concession for a 30 years period.

He also said that the concession of the airports was in alignment with the Aviation Roadmap, approved by President Muhammadu Buhari on October 18, 2016.

The statement said that the concession was also approved by the Federal Executive Council (FEC).

He said this achievement signifies a notable milestone in the country’s steadfast commitment towards revitalizing the nation’s aviation sector.

The statement added: “Following a thorough and comprehensive evaluation process that commenced with the Request for Qualification (RFQ) advertised in local and international media on August 16, 2021, and subsequent rigorous evaluation of technical and financial bids, coupled with due diligence visits conducted from December 27 through 29, 2022 and January 9 through 10, 2023, the Corporacion American Airport Consortium has emerged as the preferred bidder.

“The consortium, composed of The Corporation American Airports, Mota Engil Africa, and Mota Engil Nigeria, is globally recognised for its superior technical expertise in the design, construction, management, and operation of infrastructure.”

The statement said that Corporation American Airports, a New York Stock Exchange (NYSE) listed airport operator, has presence across three continents, managing 53 airports in six countries and serving approximately 82.4 million passengers in 2019.

The concession of NAIA and MAKIA, Sirika would considerably enhance the operational efficiency and profitability of these airports, repositioning them to operate optimally and competitively.

Besides, the Corporacion American Airport Consortium,said it is committed to making upfront payments of $7 million for NAIA and $1.5 million for MAKIA.

During the concession period, total projected nominal revenues accruable from the combined Concession of NAIA and MAKIA exceed $4 billion, while over 70 per cent of these projected revenues would be payable to the Federal Airports Authority of Nigeria (FAAN), thereby generating additional revenue sources for the Federal Government.

Sirika declared the period is historic for Nigeria’s aviation industry.

He said,the partnership with the Corporacion American Airport Consortium underscores the administration’s dedication to improving the standards of the nation’s airports, providing world-class services to all travellers and generating considerable economic benefits for the country.

He added that the concession would herald a new era of excellence in Nigeria’s aviation industry, saying that he eagerly anticipates a successful partnership with the Corporation American Airport Consortium.

He also announced that the Ministry of Aviation has changed its name to the Ministry of Aviation and Aerospace.