The Federal Airport Authority of Nigeria (FAAN) has revealed how it lost N18.9 billion Internal Generated Revenue which is over 90 per cent revenue loss in 23 weeks as a result of the COVID-19 pandemic.
Managing Director of the agency, Captain Rabiu Yadudu, made this known on Tuesday in his opening remarks at a virtual stakeholders meeting that had in attendance the Minister of Aviation, Hadi Sirika, Director General Nigeria Civil Aviation Authority, Captain Musa Nuhu and representatives of foreign and domestic airlines ahead of planned resumption of international flight on August 29.
Yadudu stated that in spite of the drastic drop in revenue, FAAN has managed to ensure that all its local airports commenced domestic operations having met the requirements of the Presidential Task Force (PTF) on COVID-19 issued to NCAA and other regulatory bodies for clearance to reopen.
The Director of Finance and Accounts (DFA) of FAAN, Mrs. Nike Aboderin, in her presentation said the agency suffered N17.5billion loss of aeronautic charges in 23 weeks and another N1.4billion loss of non-aeronautic charges from April to June, 2020 compared to same periods in 2019. Mrs. Aboderin said compared to 2019, only 8.7 percent of FAAN’s non aeronautical revenue charges were collected from April to June 2020 stating that customers are increasingly defaulting on payment and there is an increasing request for payment suspension, deferral, and waivers due to the COVID-19 crisis
She further explained that 87 per cent of 2020 budgeted overhead cost completely wiped out in six months with up to 95 percent decline in weekly revenues.
Speaking earlier, FAAN Managing Director had explained that during the lock down, the airports manager had kept the airports open and was involved in evacuation flight arrangements across the airports which made it incur cost on maintenance and utilities despite the total decline in traffic as well as revenue.
He said,” In spite of the drastic drop in revenue, as at date, FAAN has managed to ensure that all her local airports have commenced domestic operations having met the requirements by Presidential Task Force (PTF) on COVID-19, NCAA and other regulatory bodies and have been issued clearance to reopen.
“Plans are also at advanced stage to ensure that the International Airports are set for re-opening on the 29th of August, 2020 as announced by the Minister of Aviation as we will be seeing during the course of this meeting. All these have come at a huge cost to the Authority with little or no cash inflow.”
He also lamented that with the protocols put in place in view of the commencement of international operations a guideline that not more than 1,280 international passengers will be allowed on a daily basis expressing concern that fewer passengers will lead to lower incomes.