The Federal Airports Authority of Nigeria (FAAN) has disclosed that only three out of the 22 airports under its management are currently profitable. Speaking on Channels Television on Tuesday, FAAN Managing Director Olubunmi Kuku highlighted the financial challenges faced by the authority.

Kuku explained that the remaining 19 airports are being cross-subsidized by the profits generated from the three profitable ones. She noted that this practice would likely extend to the new airports under development in various states across the north and south-west regions of Nigeria.

“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 entities, 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."

“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. We are cross-subsidising the other 19 airports today and will likely do so for some of the new airports coming on board as well.”

Kuku pointed out that FAAN contributes 50 percent of its revenue to the federal government, a significant financial burden. The authority is currently in discussions with various government bodies to seek relief from this requirement.

Kuku emphasized that passenger traffic is driven more by GDP growth and economic activities rather than the construction of new airports. She stressed the importance of focusing on trade, manufacturing, and tourism to increase airport traffic. “Rather than building new airports, we need to look at the bottom of the value chain to determine what activities can drive traffic into these airports,” she said.

To enhance airport traffic and efficiency, FAAN is working closely with international organizations, including the International Air Transport Association (IATA), and the federal ministry of aviation. Kuku mentioned initiatives aimed at transforming Nigeria and specific airports into transit hubs. “We start to build a network of airports where we can push our feeders to some of the other states or locations and start to utilize our airports,” she explained.

Currently, nearly 4 million passengers travel internationally from Nigeria. Kuku stressed that the efficient use of infrastructure is essential for sustaining and maintaining these facilities.