Nigeria’s aviation sector is in dire need of sweeping reforms. At the heart of the crisis lies the Federal Airports Authority of Nigeria (FAAN), which manages 32 airports across the country. Shockingly, only four of these airports generate profit, while the rest operate at a significant loss. This unsustainable model not only drains government resources but also stifles national economic growth.
Recently, Minister of Aviation Festus Keyamo acknowledged the severity of the situation. He boldly admitted that no government can run Nigeria’s airports profitably without private sector involvement. This rare moment of candour reflects a growing consensus: privatisation is not just an option—it is an urgent necessity. The country can no longer afford to delay this transition.
Inefficiencies, Decay, and Poor Management Undermine Growth
For decades, FAAN has struggled with inefficiencies that have crippled the aviation industry. Chronic underfunding, coupled with widespread mismanagement, has left most of Nigeria’s airports in a deplorable state. Runways are deteriorating, terminals lack modern facilities, and passenger experiences fall far short of global standards.
One of the clearest signs of dysfunction is the poor maintenance of airport infrastructure. Routine repairs are frequently delayed due to insufficient funding and inflated contract prices. These setbacks are compounded by bureaucratic red tape that prevents swift innovation or response to pressing issues. Additionally, FAAN’s workforce often lacks the technical know-how and commercial expertise necessary to run efficient, profitable airports.
In a telling example of inefficiency, some airport staff are seen lingering in restrooms, handing out tissue paper in expectation of tips—a situation that should be resolved with automated dispensers and dryers, which are standard in modern terminals worldwide.
State-Owned Vanity Projects Waste Public Resources
Nigeria’s airport woes extend beyond the federal level. Several state governments have constructed airports without assessing the feasibility of sustained air traffic. These projects, often initiated for prestige rather than practical need, now languish with low activity. Some serve merely as travel points for governors and their entourages. Heavily reliant on subsidies, these white elephant projects are bleeding public finances and offer little return on investment.
Worse still, these state-owned airports often become conduits for misappropriation of funds. They represent the intersection of poor planning and systemic corruption, both of which continue to undermine Nigeria’s economic progress.
Global Success Stories Show the Way Forward
Across the globe, countries have successfully leveraged privatisation to revitalise their aviation industries. The United Kingdom offers a compelling example. In the 1980s, the British Airports Authority was privatised, resulting in an explosion of passenger traffic, improved infrastructure, and better customer service.
Germany also offers valuable lessons. Airports in cities like Hamburg and Frankfurt have flourished under a mix of private and public partnerships. These arrangements promote transparency, accountability, and profitability. Meanwhile, Australia’s long-term airport leases to private entities have set world-class benchmarks in operational efficiency and passenger satisfaction.
Nigeria need not look far for a domestic example. The Murtala Muhammed Airport Terminal 2 (MMA2) in Lagos, operated by a private concessionaire, is widely regarded as the most efficient and well-maintained terminal in the country. Its success demonstrates the transformative potential of private sector involvement in airport management.
Benefits of Privatisation Are Clear and Measurable
Privatising airports provides several key advantages. First, it attracts much-needed capital investment for the modernisation of terminals, runways, and air traffic control systems. Secondly, private operators bring in cost discipline, eliminating waste and improving service delivery.
Moreover, privately run airports usually offer a vastly better passenger experience. From faster check-ins and shorter security queues to cleaner terminals and modern amenities, customers enjoy more efficient and pleasant travel experiences. These improvements, in turn, drive up passenger traffic and revenues.
Privatisation also boosts transparency and reduces the scope for corruption. Private operators are held to strict performance metrics and are regularly audited. This culture of accountability sharply contrasts with the opaque practices common in many government-run facilities.
A Thriving Aviation Sector Drives National Development
Airports are more than transit hubs; they are vital economic engines. A strong aviation industry fuels trade, tourism, and connectivity. It links Nigeria with global markets and drives regional integration. These outcomes are crucial for a country seeking to diversify its economy and reduce its reliance on oil exports.
The ripple effects of a modern aviation sector are substantial. It stimulates job creation in various fields, including aircraft maintenance, hospitality, logistics, and retail. It also attracts foreign direct investment and encourages local entrepreneurship. A flourishing airport ecosystem has the potential to transform entire regions and significantly boost Nigeria’s GDP.
Enugu Airport and Regional Concession Models Offer Promise
The recent concessioning of Enugu Airport offers a hopeful glimpse of what private sector involvement can achieve. Backed by proactive state leadership and the federal government, the project aims to transform a previously underutilised airport into a thriving international gateway.
This model should be replicated across the country. By fostering genuine public-private partnerships, other states can develop regional aviation hubs that serve not just political elites but the broader population. These airports can become anchors for regional development, supporting everything from export businesses to inbound tourism.
Government Must Create an Enabling Environment
For privatisation to succeed, federal and state authorities must commit to transparent, competitive concession processes. Private investors need clear guidelines, long-term guarantees, and protection from political interference. They must be empowered to operate freely, innovate, and generate returns on their investments.
In tandem, strong regulatory oversight is essential. Government agencies must monitor performance, enforce safety standards, and ensure that operators meet service delivery benchmarks. Regulation must protect public interest while still encouraging efficiency and innovation.
Furthermore, Nigeria must think beyond passenger traffic. Economic linkages should be developed around airports, including logistics hubs, cargo terminals, testing labs, maintenance facilities, and hospitality services. These industries can create self-sustaining growth ecosystems, reducing overreliance on government funding.
Conclusion: Reform Is No Longer Optional
Nigeria’s aviation sector is at a crossroads. The current model of government-run airports is inefficient, unprofitable, and unsustainable. It stifles growth, wastes resources, and frustrates travelers. The success of global privatisation models, coupled with domestic examples like MMA2, provides a clear path forward.
By embracing private sector participation, Nigeria can transform its airports into world-class facilities that drive economic development and serve the nation effectively. The time for half-measures is over. With bold reforms, Nigeria’s skies can finally open to a brighter and more prosperous future.