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Federal Airports Authority of Nigeria (FAAN) www.faannigeria.org Presentation by Mr. R. Aisuebeogun MD/CEO.

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Presentation on theme: "Federal Airports Authority of Nigeria (FAAN) www.faannigeria.org Presentation by Mr. R. Aisuebeogun MD/CEO."— Presentation transcript:

1 Federal Airports Authority of Nigeria (FAAN) Presentation by Mr. R. Aisuebeogun MD/CEO

2 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... 2

3 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 Gandhi 3

4 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

5 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 purposes 5

6 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

7 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: 7

8 MURTALA MUHAMMED AIRPORT (The Flagship of FAAN) 8

9 9 Current Status Lagos Region S/nAirportCategory 1MMIA, LagosInternational 2Ibadan AirportDomestic 3Ilorin AirportDomestic 4Akure AirportDomestic 5Benin AirportDomestic

10 Current Status -contd. 10 NNAMDI AZIKIWE INTL AIRPORT, ABUJA

11 Current Status -contd. 11 Abuja Region S/nAirportCategory 1NAIA, AbujaInternational 2Kaduna Airport (including Zaria Aerodrome) Major Domestic 3Minna AirportDomestic 4Jos Airport (& Bauchi Airstrip)Domestic 5MakurdiDomestic

12 12 Kaduna Airport

13 Kano Region S/nAirportCategory 1MAKIA, KanoInternational 2Maiduguri AirportMajor Domestic 3Yola AirportMajor Domestic 4SA A, SokotoMajor Domestic 5Katsina AirportDomestic Current Status 13

14 KANO AIPORT KANO AIRPORT TERMINAL BUILDING 14

15 Current Status -contd. 15 Port Harcourt Region S/nAirportCategory 1PHIA, Port HarcourtInternational 2Enugu AirportMajor Domestic 3MEIA, CalabarMajor Domestic 4SMICA, OwerriDomestic 5*Osubi AirportDomestic *Osubi Airport is managed by Shell

16 16 Port Harcourt International

17 17 PHIA – Domestic Terminal

18 18

19 Aviation Statistics ( ) The following presents the aviation statistics as recorded by FAAN over the period 2001 till 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. 19

20 Aviation Statistics ( ) -contd YRPAXAIRCRAFTCARGO*MAIL* m.13m45.19m11.35m m.14m52.55m2.92m m.17m65.12m5.86m m.20m71.81m12.63m m.19m106.72m19.84m m.18m105.86m19.82m m.18m103.85m34.12m * Weight in Kg 20

21 Our Contribution to Nigerian Economy YRAERO (N)NON-AERO.(N)TOTAL (N) bn (81%)1.38bn (19%)7.14bn bn (85%)1.23bn (15%)8.4bn bn (85%)1.67bn (15%)10.98bn bn (75%)3.49bn (25%)13.83bn bn (75%)3.73bn (25%)15.00bn bn (78%)3.37bn (22%)15.51bn bn (81%)2.99bn (19%)15.69bn 21

22 22 OUR OUTLOOK

23 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 23

24 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 24

25 Degreasing of Apron at MMA 25

26 Focus – MediumTerm Infrastructural improvement. Improvement in fire and Safety management at all airports. Create incentives for Private-Public Partnerships Increased Non-Aero Revenue 26

27 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,etc 27

28 BUDGET PERFORMANCE

29 Revenue Sources Performance JAN-DEC SOURCES GEN- ERATED COLL- ECTED. BAL- ANCE VAR Aeronautical 12.71bn11.02bn (1.68bn)(15.25)% Non- Aeronautical 2.98bn2.518bn (0.47bn)(18.47)% TOTAL 15.69bn 13.54bn (2.15)bn(15.85)%

30 REVENUE BUDGET Vs ACTUAL FOR JAN. – DEC REV. HEADS BUD- GET GEN- ERAT ED. BAL- ANCE. VAR. Revenue (2.31)(14.75%) FGN Appropriated Fund 9.93 (9.94)(0.00%) TOTAL (12.24)(78.10%) All Revenue in Billion Naira

31 EXPENDITURE BUDGET Vs ACTUAL FOR JAN. – DEC. 07 EXP. HEADS BUDGET (bn) ACTUAL (bn) BAL. (bn) VAR (%) Personnel (4.82) Overheads (5.15) Capital Projs. (IGR)&Debts (37.18) Appr.Capital Projects 9.94 ***(0.00) TOTAL (71.08) 31 *** - Enbloc deduction by AGF

32 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. 32

33 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

34 BUDGET HIGHLIGHTS

35 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; 35

36 2008 Budget Focus -contd. Improvement in automation and information technology; Improvement in Human Resource Management and effectiveness for efficiency. 36

37 BUDGETED REVENUE HeadAmount i IGR Aero bn Non. Aero.6.48bn 24.00bn iiFGN Appro. (MTSS) 1.40bn TOTAL bn

38 BUDGETED EXPENDITURE HeadAmount iPersonnel 8.17bn iiOverheads * 7.07bn iii IGR Capt. Proj., Capt. Debts.,Safe Tower Loan 8.76bn iv FGN Appro. Capt Projects1.40bn TOTAL bn * The Overhead costs include contribution of 5% landing fees to NIMET and operating surplus to FGN.

39 39 FINANCIAL STATEMENT

40 Financial Statements The set of accounts for years 2007 and 2006 are yet to be audited, but we have a fully audited report for 2004 and 2005 as presented here. 40

41 INCOME PROFILE **2006**2005*2004* Aeronautical Sources 11.26bn 10.14bn 9.60bn 9.68bn Non- Aeronautical 4.43bn5.35bn5.66bn4.85bn Sub-Total15.69bn15.49bn15.29bn14.43bn * - Audited **- Un-Audited

42 EXPENDITURE PROFILE **2006**2005*2004* Staff Cost7.25bn 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. Cost6.18bn5.87bn4.31bn3.81bn Financial Charges0.01bn -0.02bn Total16.21bn19.35bn14.81bn13.55bn * - Audited **- Un-Audited

43 ON-GOING PROJECTS

44 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 44

45 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 SMICA 45

46 Project Cost (bn) Amt Cert. (bn) Status Runway Resurfacing % Cargo Apron Expansion % Water Supply 0.30 Awaiting FEC approval Power Project MMIA PROJECT HIGHLIGHTS 46

47 MMA Runway 18/L undergoing resurfacing 47

48 Project Cost (bn) Amt Cert. (bn) Status Complet- ion Date Runway Overlay bn90% AFL Cat III bn0% Apron Expansion 0.54 Awaiting FEC approval Power Improv bn PHIA PROJECT HIGHLIGHTS 48

49 ProjectCost Amt Cert. Status Completion Date Domestic Terminal Building Completion 762.7m547.7m75% MAKIA PROJECT HIGHLIGHTS 49

50 ProjectCostAmt Cert.Status Runway resurfacing, Expansion and Extension 6bn Tendering Airfield Lighting CAT II 960mTendering ENUGU AIRPORT PROJECT HIGHLIGHTS 50

51 ProjectCost Amt Cert. Status Runway resurfacing 3bn Tendering Airfield Lighting CAT II 960mTendering KADUNA AIRPORT PROJECT HIGHLIGHTS 51

52 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 52

53 Challenges-contd Funding of mandatory programs for Fire, AVSEC and Operations staff for airport certification. Funding Pensions Liability gap of about N30bn. 53

54 Opportunities

55 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: - 55

56 Opportunities-contd 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) 56

57 Opportunities-Contd 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 57

58 Opportunities-Contd PROPOSED PROJECTS PROPOSED LOCATION Duty Free ShopsLagos, Kano, Port Harcourt, Abuja, Calabar Aviation Fuel DepotsAbuja, Kano, Port Harcourt Water Bottling PlantsJos, Kaduna, Abuja, Akure 58

59 Opportunities-Contd PROPOSED PROJECTS PROPOSED LOCATION Interline OfficesLagos, Kano, Port Harcourt, Abuja, Calabar Cold Storage facilitiesJos, Yola, Owerri, Lagos, Abuja, Kaduna, Ilorin Shopping mallsKano, Ibadan, Lagos, Yola, Abuja, Port Harcourt 59

60 Opportunities-Contd PROPOSED PROJECTS PROPOSED LOCATION Avio-bridgesLagos,PortHarcourt,Abuja Independent Power Projects Lagos, Abuja, Port Harcourt, Kano Hangars(Aircraft maintenance facility) / FBOs Lagos, Abuja, Ilorin, Ibadan, Maiduguri, Port Harcourt, Kaduna 60

61 Opportunities-Contd PROPOSED PROJECTS PROPOSED LOCATION In-flight catering complexes Kano, Abuja, Lagos, Port Harcourt Airport AdvertisingAll Airports Cargo ManagementLagos, Abuja,,Kano, Ilorin,Calabar, Port Harcourt Car Park: Development and Management All Airports 61

62 PROPOSED PROJECTS PROPOSED LOCATION Petrol StationsPort Harcourt, Abuja, Ibadan, Ilorin, Akure Fish/Agric FarmsAll Airports Housing Estate/Amusement Park/Conference Centre All Airports 62 Opportunities-Contd

63 PROPOSED PROJECTS PROPOSED LOCATION Multipurpose HallEnugu, Minna, Abuja,PortHarcourt,Lagos Public GalleryMurtala Mohammed Airport, Lagos Internet Café / Cyber Café Lagos, Port Harcourt, Abuja, Kano, Owerri, Enugu, Calabar 63

64 Opportunities-Contd PROPOSED PROJECTS PROPOSED LOCATION Tourist attractionsAll Airports Surface/ground transportation (taxis,shuttle buses, trucks, train, etc.) All Airports 64

65 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. 65

66 10 Reasons why you should do business with FAAN- contd 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.) 66

67 10 Reasons why you should do business with FAAN- contd 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) 67

68 10 Reasons why you should do business with FAAN- contd The Governments 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. 68

69 Charges / Tariff Comparison

70 Aircraft Parking Charges CountryAirportCharge ($US) GhanaAccra0.15 per ton/hr 1 st hr Free, EgyptCairo17per/hr CoteDvoireAbidjan0.06per ton/hr UAEDubai0.75 per/day NigeriaLagos0.14 per ton/hr CameroonDouala0.2728per ton/hr S.AfricaJborg per day 70

71 Passenger Service Charge CountryAirportIntl ($US)Dom (Naira) EgyptCairo12.86N/A Ghana Accra ($0.0977) Cote DvoireAbidjan ($5.86) NigeriaLagos ($2.72) S. AfricaJBurg ($6.33) 71

72 Thank you.


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