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Nigeria Poised for Takeoff as Air Travel Hits 9.7 billion by 2040 – FAAN MD

FAAN MD- Mrs. Olubunmi Kuku delivering her welcome address during FNAC 2025 programme held in Eko Hotel Lagos on Monday

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Global air passenger traffic is projected to hit an unprecedented 9.7 billion by 2040, and Nigeria must urgently position itself to capture a significant share of that growth, the Managing Director/Chief Executive of the Federal Airports Authority of Nigeria (FAAN), Mrs. Olubunmi Kuku, declared at the FAAN National Aviation Conference (FNAC 2025) in Lagos.

Addressing an audience of government officials, industry regulators, financiers, investors, and aviation stakeholders at the Eko Convention Centre, Kuku said the world is entering a new era of air travel demand and Nigeria cannot afford to miss the wave again.

“This projection is not just a number,” she said. “It is a global economic signal. It tells us where investment, infrastructure, and opportunity are moving. Nigeria must be ready, because this is our moment.”

She explained that Africa will be one of the primary drivers of this global surge as rising population, expanding middle-class travel, and increased connectivity reshape the continent’s aviation landscape.

“And at the heart of that African growth,” she added, “lies Nigeria—the continent’s largest market, busiest population centre, and most strategic aviation hub.”

Despite existing infrastructure gaps, Kuku reframed Nigeria’s challenges as some of the strongest investment openings in the global aviation industry. Citing ICAO studies showing that every $1 invested in aviation generates $4 in economic returns, she urged local and international investors to view Nigeria not through the lens of deficits but through the scale of its untapped potential.

“Where some see gaps, we see unmatched opportunities,” she said. “Every challenge in our airports is a defined investment space with guaranteed demand. That is why FAAN is inviting partners to collaborate with us in building world-class airport systems.”

Kuku revealed that the Federal Government has already committed substantial resources to modernising airport infrastructure, with six airports currently undergoing major upgrades.

She praised President Bola Ahmed Tinubu for maintaining aviation as a priority sector and acknowledged the strong support of the Secretary to the Government of the Federation, Senator George Akume, who declared FNAC 2025 open on behalf of the President.

She further outlined the six strategic pillars guiding FAAN’s transformation agenda:

customer-focused service delivery, operational excellence, effective governance, airport viability, modernisation, and safety.

“These are not just words on paper, they are actions already underway,” she said.

Over the last two years, FAAN has trained over 7,300 personnel through its ICAO-accredited training centre in Lagos, signed new international training partnerships including an MoU with Dubai-based ATOM Aviation and introduced a major culture-change programme that is already strengthening service delivery across Nigeria’s airports.

In the area of technology, Kuku announced that FAAN has deployed next-generation screening equipment across major terminals, commenced biometric and automation upgrades, and initiated the process of securing ISO certification to boost international confidence, operational integrity, and investment readiness.

“Technology is at the centre of the new FAAN,” she said. “From passenger flow to security to parking solutions, automation will define the future of our airports.”

She outlined three major investment pathways for private and institutional investors:

large-scale infrastructure projects, including terminal expansions, cargo hubs, and airport cities; operational partnerships in areas such as ground handling, logistics, and airport management; and technology-driven ventures covering biometrics, digital processing, and sustainability systems.

“The demand is rising, the market is expanding, and Nigeria is ready to grow,” she told the audience. “The question investors must ask themselves is simple: Will you be part of the future unfolding before us?”

The Cross section of the dignitaries and the stakeholders at FNAC 2025

Kuku also appealed to aviation unions to align with the sector’s new direction, emphasising that investment and partnerships will strengthen not threaten jobs, competence, and long-term industry stability.

“This conference is not just another event,” she concluded. “It is a marketplace of ideas, partnerships, and commitments. Let us seize the opportunities that lie ahead and build an aviation sector truly worthy of Nigeria’s future.”

FNAC 2025 continues with investment sessions, expert dialogues, regulatory panels, and business networking designed to accelerate Nigeria’s aviation transformation agenda.

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AIRPORTS

FAAN, Air Force Forge Stronger Alliance to Secure Nigeria’s Airports

FAAN Managing Director, Mrs. Olubunmi Kuku and Air Vice Marshal Japhet Ekwuribe, Commander of the National Air Defence Corps during the visits to FAAN headquarters Lagos on Tuesday

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Nigeria’s aviation security architecture is set for a major boost as the Federal Airports Authority of Nigeria (FAAN) and the Nigerian Air Force move to deepen collaboration in safeguarding the nation’s airports.

FAAN Managing Director, Mrs. Olubunmi Kuku, made this clear during a high-level engagement with the Commander of the National Air Defence Corps, Air Vice Marshal Japhet Ekwuribe, in Lagos, where both institutions reaffirmed their commitment to tighter operational synergy.

At the heart of the renewed partnership is a shared determination to stay ahead of evolving security threats within airport environments.

Kuku stressed that modern aviation security demands more than isolated efforts, highlighting the need for intelligence sharing, coordinated strategies, and sustained inter-agency cooperation.

“We are dealing with dynamic security challenges that require strong partnerships and proactive coordination,” she said, noting that FAAN remains committed to working closely with the Air Force on airside patrols, surveillance, and sensitive flight operations.

She also raised concern over increasing cases of land encroachment around airport perimeters, describing it as a critical risk to aviation infrastructure that requires urgent and collective action.

In response, Air Vice Marshal Ekwuribe commended FAAN’s leadership for its forward-thinking approach, describing the collaboration as a strategic step toward strengthening surveillance and rapid response capabilities across Nigeria’s airports.

“This engagement provides an opportunity to reinforce institutional ties and improve operational effectiveness in tackling shared security priorities,” he said.

Both parties agreed to develop practical frameworks that will enhance coordination, improve monitoring systems, and ensure swift responses to potential threats.

The renewed alliance signals a proactive shift in Nigeria’s aviation security posture, one that prioritizes collaboration, vigilance, and resilience in protecting critical national assets.

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Nigeria Defends Aviation Charges, Says Costs Reflect Sector Reforms

Mr. Henry Agbebire-Director of Public Affairs and Consumer Protection-Federal Airports Authority of Nigeria

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Nigeria has pushed back against claims of excessive aviation charges, arguing that current pricing reflects long-overdue reforms rather than inefficiency or overpricing.

Reacting to recent concerns raised by the International Air Transport Association (IATA), the Federal Airports Authority of Nigeria (FAAN) says the country’s aviation charges must be understood within the context of decades of underinvestment and ongoing sector transformation.

In a detailed policy response, Director of Public Affairs and Consumer Protection at FAAN, Henry Agbebire, said the narrative portraying Nigeria as an expensive aviation market is “technically correct but strategically incomplete.”

“The real issue is not simply ‘high charges.’ It is why those charges exist,” Agbebire stated.

IATA had classified Nigeria among countries with aviation charges above global averages—a trend seen across Africa, where fees are estimated to be about 15 percent higher than global benchmarks. However, FAAN insists that focusing solely on pricing ignores deeper structural realities.

According to Agbebire, many of Nigeria’s recent tariff adjustments are not new burdens but corrections of long-standing underpricing. “You cannot run a 21st-century aviation system on 2002 pricing,” he said, noting that several charges remained unchanged for nearly two decades despite inflation and rising operational costs.

He pointed out that even revised tariffs remain competitive. For instance, cargo charges increased from ₦7 to ₦20 per kilogram still fall below inflation-adjusted values.

Beyond statutory charges, FAAN highlighted other major cost drivers often overlooked in global assessments. These include sharp increases in jet fuel prices—by as much as 300 percent—and foreign exchange constraints that once left up to $850 million in airline funds trapped in the country.

“These factors, spanning fuel, forex, and logistics, often outweigh statutory charges in determining ticket prices,” Agbebire explained.

He further emphasized that aviation development comes with unavoidable financial realities. “There is no version of aviation development that is both cheap and world-class,” he said.

Despite the challenges, FAAN maintained that Nigeria is actively reforming its aviation ecosystem. Government interventions in fuel pricing, efforts to improve cost transparency, and ongoing infrastructure upgrades are all part of a broader strategy to enhance competitiveness.

Agbebire stressed that aviation charges should be viewed as investments rather than mere costs. “If higher charges fund safer airports, modern infrastructure, improved passenger experience, and global compliance, then they are not merely costs; they are investments,” he said.

He concluded that Nigeria’s aviation sector is undergoing a necessary transition—one aimed at long-term sustainability and growth.

“The real story is not that Nigeria is expensive,” Agbebire added. “The real story is that Nigeria is paying the price of transformation.”

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FG, Bi-Courtney End 20-Year Airport Dispute in Landmark N132bn Deal Reset

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After more than two decades of legal battles and stalled aviation progress, Nigeria has finally cleared one of its most stubborn infrastructure roadblocks.

In a decisive breakthrough, the Federal Government has reached a historic settlement with Bi-Courtney Aviation Services Limited over the long-contested Murtala Muhammed Airport Terminal 2 (MM2) concession, bringing an end to a dispute that has lingered for over 20 years.

The agreement, brokered by Aviation Minister Festus Keyamo and approved by the Federal Executive Council (FEC) in Abuja, delivers sweeping concessions on both sides in what officials describe as a “win-win” resolution with immediate economic impact.

At the heart of the deal is Bi-Courtney’s decision to forgo its N132 billion Supreme Court judgment debt against the Federal Government. The company has also relinquished its exclusivity rights tied to the MM2 concession and handed back control of the Murtala Muhammed Airport Terminal 1 (MM1).

In exchange, the Federal Government has restored Bi-Courtney’s rights to complete and operate its long-delayed hotel and conference centre project within the airport axis under a revenue-sharing framework.

The agreement goes beyond dispute resolution—it resets the commercial architecture of Lagos aviation. Plans are already underway to relocate regional flight operations to MM2, supported by apron expansion to handle increased aircraft movement. This is expected to unlock immediate revenue streams for the government while maximizing the underutilized terminal’s capacity.

Industry observers say the deal removes long-standing legal and operational bottlenecks that have hindered major aviation projects, including the proposed Lekki International Airport.

The settlement also aligns with broader sector reforms, notably plans to establish a private-sector-driven aircraft leasing company aimed at improving Nigerian airlines’ access to modern fleets under competitive terms.

Minister Keyamo praised the spirit of compromise shown by all parties, noting that the agreement reflects a renewed commitment to investment-friendly policies and sustainable aviation growth.

The resolution was further strengthened by the collaboration between Keyamo and Bi-Courtney Chairman Wale Babalakin, whose shared professional background and alignment on national interest helped drive negotiations to a successful close.

With this deal, Nigeria not only ends a costly legal chapter but opens a new runway for aviation expansion, anchored on cooperation, efficiency, and long-term value creation.

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