In a significant milestone for the revitalisation of Nigeria’s aviation sector, the Federal Executive Council has approved the concession of the Nnamdi Azikiwe International Airport (NAIA) in Abuja and the Mallam Aminu Kano International Airport (MAKIA) in Kano.
The renamed Ministry of Aviation and Aerospace announced this achievement, highlighting its steadfast commitment to transforming the nation’s aviation industry.
After a thorough evaluation process that began with the Request for Qualification (RFQ) published in local and international media on August 16, 2021 and subsequent meticulous evaluation of technical and financial bids, the Corporacion American Airport Consortium emerged as the preferred bidder. The consortium comprises Corporacion American Airports, Mota Engil Africa and Mota Engil Nigeria, renowned globally for their superior technical expertise in infrastructure design, construction, management and operation.
The Corporacion American Airports, a New York Stock Exchange (NYSE) listed airport operator, manages 53 airports in six countries across three continents, catering to approximately 82.4 million passengers in 2019.
This concession of NAIA and MAKIA is poised to significantly enhance the operational efficiency and profitability of these airports, enabling them to operate optimally and compete on a global scale.
The agreement, based on a public-private partnership, will remain effective for 20 years for NAIA and 30 years for MAKIA. As part of the arrangement, the Corporacion American Airport Consortium will make upfront payments of $7 million for NAIA and $1.5 million for MAKIA. During the concession period, the combined projected nominal revenues from NAIA and MAKIA exceed $4 billion, with over 70 per cent of these revenues payable to the Federal Airports Authority of Nigeria (FAAN), creating additional revenue streams for the Federal Government.
Minister of Aviation & Aerospace, Sen. Hadi Sirika expressed his delight at the approval, coinciding with the signing of the memorandum of understanding (MoU) for the establishment of the African Aviation and Aerospace University (AAAU). He described this period as momentous for Nigeria’s aviation industry, emphasising the government’s dedication to enhancing airport standards, delivering world-class services, and driving substantial economic benefits.
Sirika said the ministry anticipates a successful partnership with the Corporacion American Airport Consortium, envisioning a new era of excellence in Nigeria’s aviation industry.
In a related development, the Federal Executive Council has also approved the change in the name of the Federal Ministry of Aviation to the Ministry of Aviation & Aerospace, aligning it with the sector’s nature, exclusively managed and regulated by the Federal Government.