Head of FAAN rejects proposal for new aviation funding body

Managing Director and Chief Executive Officer of the Federal Airports Authority of Nigeria, Mrs. Olubunmi Kuku, has voiced her opposition to establishing a dedicated aviation financing body, instead advocating for existing lenders to create specialized aviation desks to foster a deeper understanding of the sector and provide support.

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This stance was expressed during her speech at the African Air Transport Convention and Expo 2026 in Togo, where she discussed the role of effective PPP models in infrastructure development, emphasizing that setting up new institutions would be unnecessary and potentially complicate funding efforts for critical projects.

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According to Kuku, the primary focus should be on bolstering existing financial structures and equipping them with the necessary technical expertise to assess aviation investments, rather than creating new entities.

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In response to suggestions for new aviation-focused financing institutions, Kuku stated, “I strongly do not support that, I’d rather that the existing financing institutions set up specialised desks to understand the aviation environment and also provide support, if possible, as part of project preparation facilities.”

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Kuku explained that many financiers, including development finance institutions, often face a shortage of well-prepared and bankable aviation projects, rather than a lack of available funds, highlighting the need for technical support in project preparation to help stakeholders present viable investment opportunities.

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She noted that this collaborative approach would enable financiers and aviation stakeholders to work together more effectively, presenting bankable projects and unlocking much-needed infrastructure investments.

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Kuku drew from her experience in infrastructure finance and airport management, emphasizing that successful Public-Private Partnership models are driven by institutional credibility, regulatory certainty, and disciplined project execution, rather than solely by access to capital.

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“It’s not just driven by capital availability, but really around resilience on institutional credibility, regulatory certainty and project discipline,” she said, adding that unresolved contractual issues can undermine investor confidence, citing the example of the long-running concession dispute involving the Murtala Muhammed Airport Terminal Two.

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The dispute, which involved Bi-Courtney Aviation Services Limited, has now been resolved at the Federal Executive Council level, according to Kuku, who stated, “It’s now been resolved,” and expressed confidence that this resolution would provide better investor confidence for future PPP projects and ensure fair concession agreements for both government and the private sector.

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FAAN currently manages 22 Federal Government-owned airports and is implementing a roadmap designed to modernize infrastructure and improve passenger experience, with a focus on digital transformation, including the deployment of e-gates, biometric processing systems, and RFID technology for baggage handling.

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According to Kuku, Nigeria’s aviation market holds significant growth potential, with the country’s annual passenger traffic of about 17 million representing less than 10 per cent of its estimated population of over 220 million people, and identifying transit passengers and cargo operations as major areas for future expansion.

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The FAAN chief noted, “We believe strongly that transit passengers as well as cargo present huge opportunities,” highlighting the potential for growth in these areas.