The Federal Airports Authority of Nigeria (FAAN) and Bi-Courtney Aviation Services Limited have outlined different approaches to increasing revenue in Nigeria’s aviation sector, with FAAN calling for a comprehensive review of industry charges and Bi-Courtney advocating lower charges to stimulate passenger traffic and economic activity.
The positions were presented at the 30th Annual Conference of the League of Airport and Aviation Correspondents (LAAC) in Lagos, themed “Towards Sustainable Aviation Industry: Balancing Government Revenue Demands with Sector Growth.”
Representing FAAN Managing Director Olubunmi Kuku at a panel session, the agency’s Director of Finance and Accounts, Ayodele Olatiregun, said aviation revenue had improved since the COVID-19 pandemic, but international passenger traffic remained the main driver of revenue.
She said domestic passenger traffic had recorded some growth over the past five years but its contribution to the sector’s overall revenue remained relatively low.
FAAN therefore called for a comprehensive review of taxes, levies and charges imposed across the aviation industry. The agency also stressed the need for stakeholders, including government agencies and private operators, to make relevant financial information available to support such a review.
However, Bi-Courtney Aviation Services Limited, operator of the Murtala Muhammed Airport Terminal Two (MMA2), proposed a different approach.
The company’s Acting Chief Operating Officer, Remi Jibodu, urged the government to treat aviation primarily as an economic multiplier rather than focusing mainly on immediate revenue collection.
Jibodu argued that lower charges could encourage higher passenger numbers and expand activities such as cargo handling, ground handling, travel services and other businesses linked to aviation.
According to him, expanding the sector’s overall economic activity could ultimately generate more revenue for government while supporting employment and investment.
The differing positions come months after the Federal Government and Bi-Courtney reached a settlement aimed at resolving their long-running dispute over MMA2. Under the agreement, the government was to begin receiving its share of revenue from the terminal’s operations.
The debate reflects the broader challenge of balancing government revenue expectations with efforts to reduce the cost of air travel and promote sustained growth in Nigeria’s aviation industry.
