Nigeria's Airports Can Rival Continent's Finest, Says FAAN Managing Director

Dickson Omobola's conversation with Mrs Olubunmi Kuku, the Managing Director of the Federal Airports Authority of Nigeria, FAAN, reveals the authority's plans to transform the country's international airports into a hub, as well as the reasoning behind the chaos caused by the introduction of the cashless policy for travellers and airport users, and the 22 to 24 months timeframe for the renovation of the Old Terminal at Murtala Muhammed International Airport, MMIA.

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The introduction of the cashless policy at airports in Lagos and Abuja led to chaos, prompting President Bola Tinubu to advocate for a seamless system, and currently, FAAN is adopting a payment method that addresses the challenges posed by the policy.

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The cashless policy, which was introduced around July last year and intensified in October, was accompanied by two circulars from the Federal Government, directing FAAN to stop cash activities, and despite initial difficulties, the authority has seen improvements in the system.

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Lagos and Abuja airports, being the two biggest markets, followed by Kano and Port Harcourt, presented unique challenges, with Lagos having a large community nearby, unlike Abuja, where most passengers use the airport as their end destination.

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The implementation of the cashless policy in Lagos was particularly challenging due to the airport's proximity to residential areas, such as Ikeja, Oshodi, and Isolo, and the lack of a 13-kilometre radius, unlike many other airports worldwide.

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Despite initial bottlenecks, FAAN registered about 100,000 customers, with 62,000 registrations taking place in the last three days of the policy, and the authority is working to ensure a seamless experience for passengers and neighbouring communities.

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President Bola Tinubu's intervention led to a waiver, allowing FAAN to operate a hybrid system, combining contactless cards and cash payments, until a broader view of the number of people using contactless payments is achieved.

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The concept of a hub, as seen in airports like Cairo International and O.R. Tambo International in Johannesburg, involves creating an environment where transit passengers can move between locations without making the country their end destination.

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In Nigeria, the GDP is a key factor driving passenger traffic, but the country's passenger traffic is less than two per cent of its GDP, indicating a need to improve the business environment and drive economic activity to increase passenger traffic.

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To make the hub strategy effective, FAAN needs to look at enablers such as airlines, bilateral air service agreements, and transit facilities, which are currently lacking in Nigerian airports.

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The recent fire incident at the Old Terminal at MMIA had a minimal impact on the renovation timeline, with only a two-day setback, and the authority is working to restore operations to normal within the 22 to 24 months timeline.

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The rehabilitation work at the Old Terminal includes the activation of a temporary terminal, which has been occupied by four airlines, and the construction of alternate routes and a bridge, all of which are part of the efforts to meet the 22 to 24 months renovation timeline.