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Federal Airports Authority of Nigeria (FAAN)

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Presentation on theme: "Federal Airports Authority of Nigeria (FAAN)"— Presentation transcript:

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

2 FAAN 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...

3 FAAN 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

4 OUR VISION OUR VISION OUR MISSION
FAAN OUR VISION 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.

5 FAAN 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

6 Statutory Functions -contd.
FAAN 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

7 FAAN 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:

8 MURTALA MUHAMMED AIRPORT (The Flagship of FAAN)

9 Current Status Lagos Region S/n Airport Category 1 MMIA, Lagos
FAAN Current Status Lagos Region S/n Airport Category 1 MMIA, Lagos International 2 Ibadan Airport Domestic 3 Ilorin Airport 4 Akure Airport 5 Benin Airport

10 FAAN Current Status contd. NNAMDI AZIKIWE INT’L AIRPORT, ABUJA

11 Current Status -contd. Abuja Region S/n Airport Category 1 NAIA, Abuja
FAAN Current Status contd. Abuja Region S/n Airport Category 1 NAIA, Abuja International 2 Kaduna Airport (including Zaria Aerodrome) Major Domestic 3 Minna Airport Domestic 4 Jos Airport (& Bauchi Airstrip) 5 Makurdi

12 FAAN Kaduna Airport

13 Current Status Kano Region S/n Airport Category 1 MAKIA, Kano
International 2 Maiduguri Airport Major Domestic 3 Yola Airport 4 SA A, Sokoto 5 Katsina Airport Domestic

14 KANO AIPORT KANO AIRPORT TERMINAL BUILDING

15 Current Status -contd. Port Harcourt Region S/n Airport Category 1
FAAN Current Status contd. Port Harcourt Region S/n Airport Category 1 PHIA, Port Harcourt International 2 Enugu Airport Major Domestic 3 MEIA, Calabar 4 SMICA, Owerri Domestic 5 *Osubi Airport *Osubi Airport is managed by Shell

16 Port Harcourt International
FAAN Port Harcourt International

17 PHIA – Domestic Terminal
FAAN PHIA – Domestic Terminal

18 FAAN

19 Aviation Statistics (2001-2007)
The following presents the aviation statistics as recorded by FAAN over the period 2001 till 2007. 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.

20 Aviation Statistics (2001-2007) -cont’d
YR PAX AIRCRAFT CARGO* MAIL* 2001 5.22m .13m 45.19m 11.35m 2002 6.05m .14m 52.55m 2.92m 2003 7.13m .17m 65.12m 5.86m 2004 8.14m .20m 71.81m 12.63m 2005 8.31m .19m 106.72m 19.84m 2006 8.08m .18m 105.86m 19.82m 2007 8.41m 103.85m 34.12m * Weight in Kg

21 Our Contribution to Nigerian Economy 2001-2007
YR AERO (N) NON-AERO.(N) TOTAL (N) ‘01 5.76bn (81%) 1.38bn (19%) 7.14bn ‘02 7.18bn (85%) 1.23bn (15%) 8.4bn ‘03 9.30bn (85%) 1.67bn (15%) 10.98bn ‘04 10.34bn (75%) 3.49bn (25%) 13.83bn ‘05 11.27bn (75%) 3.73bn (25%) 15.00bn ‘06 12.14bn (78%) 3.37bn (22%) 15.51bn 07 12.70bn (81%) 2.99bn (19%) 15.69bn

22 FAAN OUR OUTLOOK

23 Focus – Short Term Sustained and continuous debt recovery
FAAN 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

24 Focus – Short Term -contd.
FAAN 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

25 Degreasing of Apron at MMA
25

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

27 FAAN 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

28 FAAN 2007 BUDGET PERFORMANCE

29 Revenue Sources Performance JAN-DEC ‘07
FAAN Revenue Sources Performance JAN-DEC ‘07 SOURCES GEN-ERATED COLL-ECTED. BAL-ANCE VAR Aeronautical 12.71bn 11.02bn (1.68bn) (15.25)% Non-Aeronautical 2.98bn 2.518bn (0.47bn) (18.47)% TOTAL 15.69bn 13.54bn (2.15)bn (15.85)%

30 REVENUE BUDGET Vs ACTUAL FOR JAN. – DEC. ‘07
FAAN REVENUE BUDGET Vs ACTUAL FOR JAN. – DEC. ‘07 REV. HEADS BUD-GET GEN-ERATED. BAL-ANCE. VAR. Revenue 18 15.69 (2.31) (14.75%) FGN Appropriated Fund 9.93 (9.94) (0.00%) TOTAL 27.94 (12.24) (78.10%) All Revenue in Billion Naira

31 EXPENDITURE BUDGET Vs ACTUAL FOR JAN. – DEC. ‘07
FAAN EXPENDITURE BUDGET Vs ACTUAL FOR JAN. – DEC. ‘07 EXP. HEADS BUDGET (bn) ACTUAL (bn) BAL. VAR (%) Personnel 7.54 6.14 1.41 (4.82) Overheads 6.74 6.41 0.33 (5.15) Capital Projs. (IGR)&Debts 3.72 2.71 1.01 (37.18) Appr.Capital Projects 9.94  *** (0.00) TOTAL 27.94 15.26 2.75 (71.08) *** - Enbloc deduction by AGF

32 Performance Summary -contd.
FAAN 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.

33 Performance Summary -contd.
FAAN 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.

34 FAAN 2008 BUDGET HIGHLIGHTS

35 FAAN 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;

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

37 BUDGETED REVENUE 2008 Head Amount i IGR Aero. 17.52bn Non. Aero.
FAAN BUDGETED REVENUE 2008 Head Amount i IGR Aero. 17.52bn Non. Aero. 6.48bn 24.00bn ii FGN Appro. (MTSS) 1.40bn TOTAL 25.40 bn

38 BUDGETED EXPENDITURE 2008 Head Amount i Personnel 8.17bn ii
FAAN BUDGETED EXPENDITURE 2008 Head Amount i Personnel 8.17bn ii Overheads * 7.07bn iii IGR Capt. Proj., Capt. Debts.,Safe Tower Loan 8.76bn iv FGN Appro. Capt Projects 1.40bn TOTAL 25.40 bn *The Overhead costs include contribution of 5% landing fees to NIMET and operating surplus to FGN.

39 FAAN FINANCIAL STATEMENT

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

41 INCOME PROFILE 2007** 2006** 2005* 2004* Aeronautical Sources 11.26bn
FAAN INCOME PROFILE 2007** 2006** 2005* 2004* Aeronautical Sources 11.26bn 10.14bn 9.60bn 9.68bn Non-Aeronautical 4.43bn 5.35bn 5.66bn 4.85bn Sub-Total 15.69bn 15.49bn 15.29bn 14.43bn * - Audited **- Un-Audited

42 EXPENDITURE PROFILE 2007** 2006** 2005* 2004* Staff Cost 7.25bn 9.36bn
FAAN EXPENDITURE PROFILE 2007** 2006** 2005* 2004* Staff Cost 7.25bn 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. Cost 6.18bn 5.87bn 4.31bn 3.81bn Financial Charges 0.01bn - 0.02bn Total 16.21bn 19.35bn 14.81bn 13.55bn * - Audited **- Un-Audited

43 FAAN ON-GOING PROJECTS

44 FAAN 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

45 PROJECTS HIGHLIGHTS Resurfacing of MMIA Domestic Runway
FAAN 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

46 MMIA PROJECT HIGHLIGHTS
FAAN MMIA PROJECT HIGHLIGHTS Project Cost (bn) Amt Cert. (bn) Status Runway Resurfacing 3.56 1.78 70% Cargo Apron Expansion 0.85  0.43 20% Water Supply 0.30 Awaiting FEC approval Power Project 0.17 0.07

47 MMA Runway 18/L undergoing resurfacing
47

48 PHIA PROJECT HIGHLIGHTS
FAAN PHIA PROJECT HIGHLIGHTS Project Cost (bn) Amt Cert. (bn) Status Complet-ion Date Runway Overlay 3.00 2.28 bn 90% AFL Cat III. 0.92  0.46 bn 0% Apron Expansion 0.54 Awaiting FEC approval Power Improv. 0.74 0.362bn

49 MAKIA PROJECT HIGHLIGHTS
FAAN MAKIA PROJECT HIGHLIGHTS Project Cost Amt Cert. Status Completion Date Domestic Terminal Building Completion 762.7m 547.7m 75%

50 ENUGU AIRPORT PROJECT HIGHLIGHTS
FAAN ENUGU AIRPORT PROJECT HIGHLIGHTS Project Cost Amt Cert. Status Runway resurfacing, Expansion and Extension 6bn Tendering Airfield Lighting CAT II 960m

51 KADUNA AIRPORT PROJECT HIGHLIGHTS
FAAN KADUNA AIRPORT PROJECT HIGHLIGHTS Project Cost Amt Cert. Status Runway resurfacing 3bn Tendering Airfield Lighting CAT II 960m

52 CHALLENGES Decayed and decaying Airport Infrastructure
FAAN 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

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

54 Opportunities

55 Opportunities 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: -

56 Opportunities -cont’d
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)

57 Opportunities -Cont’d
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

58 Opportunities -Cont’d
PROPOSED PROJECTS PROPOSED LOCATION Duty Free Shops Lagos, Kano, Port Harcourt, Abuja, Calabar Aviation Fuel Depots Abuja, Kano, Port Harcourt Water Bottling Plants Jos, Kaduna, Abuja, Akure

59 Opportunities -Cont’d
PROPOSED PROJECTS PROPOSED LOCATION Interline Offices Lagos, Kano, Port Harcourt, Abuja, Calabar Cold Storage facilities Jos, Yola, Owerri, Lagos, Abuja, Kaduna, Ilorin Shopping malls Kano, Ibadan, Lagos, Yola, Abuja, Port Harcourt

60 Opportunities -Cont’d
PROPOSED PROJECTS PROPOSED LOCATION Avio-bridges Lagos,PortHarcourt,Abuja Independent Power Projects Lagos, Abuja, Port Harcourt, Kano Hangars(Aircraft maintenance facility) / FBO’s Lagos, Abuja, Ilorin, Ibadan, Maiduguri, Port Harcourt, Kaduna

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

62 Opportunities -Cont’d
PROPOSED PROJECTS PROPOSED LOCATION Petrol Stations Port Harcourt, Abuja, Ibadan, Ilorin, Akure Fish/Agric Farms All Airports Housing Estate/Amusement Park/Conference Centre

63 Opportunities -Cont’d
PROPOSED PROJECTS PROPOSED LOCATION Multipurpose Hall Enugu, Minna, Abuja,PortHarcourt,Lagos Public Gallery Murtala Mohammed Airport, Lagos Internet Café / Cyber Café Lagos, Port Harcourt, Abuja, Kano, Owerri, Enugu, Calabar

64 Opportunities -Cont’d
PROPOSED PROJECTS PROPOSED LOCATION Tourist attractions All Airports Surface/ground transportation (taxis,shuttle buses, trucks, train, etc.)

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.

66 10 Reasons why you should do business with FAAN -cont’d
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.)

67 10 Reasons why you should do business with FAAN -cont’d
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)

68 10 Reasons why you should do business with FAAN -cont’d
The Government’s 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.

69 Charges / Tariff Comparison

70 Aircraft Parking Charges
Country Airport Charge ($US) Ghana Accra 0.15 per ton/hr 1st hr Free, Egypt Cairo 17per/hr CoteD’voire Abidjan 0.06per ton/hr UAE Dubai 0.75 per/day Nigeria Lagos 0.14 per ton/hr Cameroon Douala 0.2728per ton/hr S.Africa J’borg per day 70

71 Passenger Service Charge
Country Airport Int’l ($US) Dom (Naira) Egypt Cairo 12.86 N/A Ghana Accra 50.00 12.57 ($0.0977) Cote D’voire Abidjan 23.38 754 ($5.86) Nigeria Lagos 35.00 350 ($2.72) S. Africa J’Burg 18.44 814.5 ($6.33)

72 FAAN Thank you.


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