The Federal Airports Authority of Nigeria (FAAN) has disclosed that nineteen out of the 22 airports in the country are not making profit.
Olubunmi Kuku, FAAN’s Managing Director, spoke on Channels Television on Tuesday. She revealed that some states in the northern and Southern parts of the nation are developing new airports.
Kuku stated that FAAN is cross-subsidising the unprofitable airports and will continue to do so, including for the new ones coming onboard.
“I started off by saying that we have 22 airports which we own and manage,” Kuku said.
“We also have about six or seven airports that are either owned by state governments or private individuals or entity which we also support with either aviation security or fire and rescue services.
“We have a number of states in the north as well as in the south-west that are coming up with new airports.
“I would say that based on the stats today, only three of the 22 airports are actually profitable and contribute largely to the sustenance of the airport companies that we run.
“I would also say that we are actually cross-subsidising the other 19 airports today and in most instances, we will substitute or cross-subsidise for some of the airports that are coming on board as well.”
Kuku said the FAAN contributes 50 percent of its revenue to the federal coffers which is a major challenge, adding that the authority is in discussions with the various arms of government for some relief.
