The Federal Airports Authority of Nigeria (FAAN) received a much-needed financial lifeline of N7.7 billion in COVID-19 intervention funds, as disclosed by the Managing Director, Olubunmi Kuku. This revelation unfolded during a probing public hearing on COVID-19 funds organized by the House of Representatives Committee on Public Accounts in Abuja.
Kuku emphasized the unprecedented challenges faced by FAAN in 2020, attributable to the global pandemic declaration by the World Health Organization on March 11, 2020, which severely impacted various sectors, with aviation being one of the hardest hit.
The dire financial strain led FAAN to grapple with partial salary payments and deferred commitments, allocating meager revenue—merely about five per cent—for airport maintenance. This triggered threats of airport shutdowns from aviation unions, prompting FAAN to seek a N16.8 billion salary intervention for personnel costs and related expenses. Out of this plea, FAAN was allocated N7.7 billion from the Ministry of Aviation’s requested N24 billion intervention fund.
In her address to the lawmakers, Kuku elucidated FAAN’s statutory mandate of managing commercial airports in Nigeria and catering to passengers, airlines, and aviation stakeholders. She stressed FAAN’s responsibility for fostering the conducive development of air transport and its connected services in an economically efficient manner, guided by the Act establishing FAAN.
The Chairman of the Committee, Rep. Bamidele Salam, demanded that FAAN provide comprehensive documentation to account for the fund allocation breakdown.
These revelations not only shed light on FAAN’s financial struggles during the pandemic but also underscore the broader challenges faced by the aviation industry amid the global health crisis.
This compelling disclosure by the Managing Director illuminates the immense financial strain experienced by FAAN and provides valuable insights into the intricate web of pandemic-induced financial hurdles faced by critical sectors such as aviation.
