The Federal Government has signed a 30-year concession agreement for the Port Harcourt International Airport as part of efforts to attract private investment, improve operational efficiency, and unlock the economic potential of the nation’s loss-making airports.
The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this on Thursday in Abuja during the signing of the concession agreement with Port Harcourt Airport Company Limited.
Keyamo said the concession was aimed at improving the operational efficiency of the airport, boosting revenue generation and unlocking its commercial potential.
He explained that the Federal Government had been using profits generated from major airports to subsidise the operations of other airports that were running at a loss.
According to him, the cost of maintaining airports, including personnel expenses, diesel and other operational requirements, has continued to put pressure on government finances.
The minister said government lacked the resources to fully develop the non-aeronautical components of some airports, making private sector participation necessary.
“Some of our airports are being run at a loss. We make so much money from some of our primary airports, and most of those profits are ploughed into running other airports,” Keyamo said.
He noted that the concession had the approval of President Bola Tinubu and the Federal Executive Council, adding that the process was not a sudden decision but one that successive administrations had struggled to implement.
Keyamo said previous attempts to concession airports were frustrated by resistance from labour unions and court cases involving the government.
He, however, attributed the successful conclusion of the process to negotiations with aviation unions, saying the government had secured their agreement before signing the deal.
