In a bid to enhance revenue generation, the Federal Airports Authority of Nigeria (FAAN) has unveiled plans to increase tariffs. The Director, Commercial and Business Development, FAAN, Adebola Agunbiade made the disclosure on Monday while speaking at the Directorate of Commercial and Business Development Stakeholders Engagement Forum in Lagos.
The agency stressed that the hike is a key move in advancing its operations and adjusting its revenue system. Likewise, the FAAN executive said the move is an attempt to support the authority to foot some of its expenses.
However, in her words, Agunbiade promised that the authority would ensure that the review isn’t on the high side for end users. As part of the revelation, the tariff will center on all service providers operating in major airports in the country.
The FAAN added that about 92% of its revenue streams are from aeronautical sources, on the flip side, just 8% are from non-aeronautical businesses. According to the authority, the revenue formation differs from existing global standards, with more than 40% income from non-aeronautical activities in advanced countries.
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More so, Agunbiade promised that the FAAN would inform all service providers ahead of the tariff hike. She narrated how the early notification will support businesses to adjust their operations and incorporate the latest changes.
FAAN hints at changes in lease agreement and payment system
Away from the tariff increase, Agunbiade also mentioned how the FAAN has reviewed some of its lease agreements. The director discussed how the previous agreement had created issues in the past, stating that most parties barely read the terms.
To avoid further concussion, the executive stated that the authority worked with its legal team for an extensive review of the lease agreement. She commented that business operators seeking renewal or fresh application will discover changes in the agreement terms.
Similarly, the executive added that the FAAN is planning to stop cash transactions at payment points. In her narration, she explained that the move would enable the implementation of an automated and contactless payment system at Nigerian airports.
The director clarified that the new innovation will be an airport card that allows travellers to just tap and make payment. Agunbiade emphasized that the new system will make payments more seamless at Nigerian airports.
