1. ENHANCING PRIVATE SECTOR PARTICIPATION-NIGERIAN AIRPORTS
A Presentation by Engr. Saleh Dunoma, Managing Director/CEO of Federal Airports Authority of Nigeria, at the Nigeria Infrastructure and Building Conference, Lagos.
27th September, 2016. ,

2. OUTLINE Introduction Challenges and Government’s commitments
Investment needs and opportunities
Gains of PPP
Conclusion

3. INTRODUCTION
Air transport lies at the heart of global business and tourism
The Aviation sector comprises distinct types of activities:
Airline: which transports passengers and freights;
The Ground-based infrastructure: these include the Airport facilities, services provided for passengers at the Airports, baggage handling, ticketing, catering, retail and such other aviation related services.

4. NIGERIAN AIRPORTS: WHO WE ARE
FAAN manages 22 Airports in Nigeria
Provides services in 9 State owned and private Airports, including the Domestic Terminal 2 (MMA2), operated by Messrs Bi-Courtney Ltd.
Four major International Airports well spread across Nigeria; MMIA Lagos, NAIA Abuja, MAKIA Kano and PHIA Port-Harcourt.
We have twenty Cargo Terminals under the remodeling/infrastructure improvement project.
Great business potentials in the different geographical regions

5. Passenger throughput across Nigeria

6. OUR EXPERIENCE
The Domestic Terminal 2 (MMA2) managed and operated by Bi-Courtney Ltd;
Other concessions;
Lessons learnt: need to ensure provision of guarantee for investors by compliance with the regulatory framework and regime as provided in the ICRC Act;
Engage International Transaction Advisors & prepare world class Agreement in line with ICRC Guidelines for PPP.

7. OUR CHALLENGES
Infrastructure deficit in our Airports and the urgent need for replacement
Scarce resources and Funding challenges
Cost of borrowing/Bank interest rates
Bureaucracy
Policy somersault (now a thing of the past, as the Government is ready to implement the regulatory framework and mechanism that demands transparency, open competition & cost effectiveness).

8. PRESIDENT MUHAMMADU BUHARI
Political Commitment
EXCERPTS OF SPEECH BY
PRESIDENT MUHAMMADU BUHARI
ON AUGUST 23, 2015
“We also have a huge infrastructure deficit for which we
require foreign capital and expertise to supplement whatever
resources we can marshal at home. In essence, we seek public
private partnerships in our quest for enhanced capital and
expertise.” 32

9. OUR EXPECTATIONS & INVESTMENT NEEDS
The National Integrated Infrastructure Masterplan (NIMP) requires an expenditure of $3.10 Trillion (USD) over a period of 30years. The private sector is expected to inject about 48% of this sum through PPP.
The first 5year Investment focus will be $11bn (USD) for the Transport sector as a whole.
$5b (USD) is projected for the
Aviation sector.
Source: National Planning Commission

10. INVESTMENT OPPORTUNITIES
Management of the passenger Terminals.
Improvement and management of Cargo Terminals (Wet and Dry Cargo).
Construction of Second Runway and New Terminal Buildings at NAIA Abuja and other Airports.
Improvement and supply of sustainable Power to the Airports: some parts of Nigeria have at least 200 days of sunshine which can be converted to solar power by Investors.

11. INVEST. OPPS. CONTD.
The MULTI LEVEL CAR PARK UNDER CONSTRUCTION BY PRIVATE INVESTORS AT THE MURTALA MUHAMMED INTERNATIONAL AIRPORT TERMINAL, LAGOS.

12. INVEST OPPS. CONTD.
Construction and provision of Inter-terminal Rail Network Service
Development of MROs - Hangars
Development of Hospitality facilities

13. NEW TERMINAL BUILDING, MURTALA MUHAMMED INTERNATIONAL AIRPORT, LAGOS

14. NEW TERMINAL BUILDING, PORT- HARCOURT INT’L AIRPORT, PORT-HARCOURT

15. NEW TERMINAL BUILDING, NNAMDI AZIKIWE INTERNATIONAL AIRPORT, ABUJA

16. NEW TERMINAL BUILDING, MALLAM AMINU KANO INTERNATIONAL AIRPORT, KANO

17. INVEST OPPS. CONTD. SOURCE: EUROSTAT, OXFORD ECONOMICS
Nigeria is strategically located on the Map.
This strategic location can be developed as a hub for passengers and cargo movement.
SOURCE: EUROSTAT, OXFORD ECONOMICS

18. TEN YEARS FORECAST OF AIRCRAFT MOVEMENT FOR FOUR INT'L AIRPORTS
2015 BASE YEAR
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
MMIA
28,019
30,821
33,903
37,293
41,023
45,125
49,637
54,601
60,061
66,067
72,674
ABUJA
8,870
9,757
10,733
11,806
12,987
14,285
15,714
17,285
19,014
20,915
23,006
KANO
2,086
2,295
2,524
2,776
3,054
3,360
3,695
4,065
4,472
4,919
5,411
PHIA
2,248
2,473
2,720
2,992
3,291
3,620
3,982
4,381
4,819
5,301
5,831

19. TEN YEARS FORECAST OF AIRCRAFT MOVEMENT FOR FOUR INTERNATIONAL AIRPORTS

20. OUR GAINS UNDER PPP Compliance with Due Diligence;
An opportunity for the use of appropriate technology and innovation as well as good management;
Developing local private sector capabilities and competences;
Timely and on budget delivery of Projects;
Budgetary certainty and guarantee;

21. GAINS CONTD.
Provide an increasing opportunity for the private sector to participate in service delivery;
Value for money;
Better allocation of risks between parties;
Sustainable maintenance program;
Standardized contracts with minimal errors

22. GAINS CONTD. Ripple effect on the economy:
Turkey’s aviation sector contributed $3.88Bn (USD) in to the country’s GDP and supports about 204,000 in jobs.
Dubai contributed about $26.7bn (USD) in 2013 to GDP
Nigeria can do same because of our location in the globe and our population

23. MURTALA MUHAMMED AIRPORT DOMESTIC TERMINAL 2 (Bi-Courtney Ltd)17
MMA2 Departure Hall

24. PRIVATE HANGAR

25. PRIVATE HANGAR CONTD.

26. CONCLUSION
We invite Investors to join the PPP process for Airport management and take advantage of the vast opportunities, and offerings in our Airports.
Contacts: The Office of the Managing Director/CEO, FAAN.