Federal Airports Authority of Nigeria (FAAN)

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Presentation by Mr. R. Aisuebeogun MD/CEO

• Federal Airports Authority of Nigeria (FAAN)
• www.faannigeria.org

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INTRODUCTION

• Federal Airports Authority of Nigeria (FAAN) was
  established in 1996 to develop, provide and
  maintain at airports all necessary services and
  facilities for the safe, orderly, expeditious and
  economic operation of air transport, amongst
  other functions.
• At FAAN Safety and Security is the watchword
  and we operate from the premise that...

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INTRODUCTION -contd.

• A customer (the flying public) is the most
  important visitor on our premises (Airports), he
  is not dependent on us. We are dependent on him.
  He is not an interruption in our work. He is the
  purpose of it. He is not an outsider in our
  business. He is part of it. We are not doing him
  a favour by serving him. He is doing us a favour
  by giving us an opportunity to do so.
• Mahatma Gandhi

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OUR VISION

• OUR VISION
• To be amongst the best airport groups in the
  world
• OUR MISSION
• To develop and profitably manage
  customer-centric airport facilities for safe,
  secure and efficient carriage of passengers and
  goods at world-class standards of quality.

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Statutory Functions

• To develop, provide and maintain at airports all
  necessary services and facilities for the safe,
  orderly, expeditious and economic operation of
  air transport
• To provide adequate facilities and personnel for
  effective security at all airports
• To provide conducive environment under which
  passengers and goods would be carried by air and
  under which aircraft would be used for gainful
  purposes

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Statutory Functions -contd.

• To provide accommodation and other facilities for
  effective handling of passengers and freight
• To develop and provide facilities for surface
  transportation at Airports
• Carrying out, at airports, such economic
  activities that are relevant to air
  transportation and other commercial activities,
  which are not relevant to air transportation, but
  which may be carried out without prejudice to its
  other functions

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Current Status

• There are 21 airports under the management of
  FAAN, categorised into International, Major
  Domestic and Domestic.
• The airports in each of the categories operate
  for 24 hrs, 18 hrs and 10 hrs respectively.
• The airports are now to be managed regionally
  viz

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MURTALA MUHAMMED AIRPORT(The Flagship of FAAN)
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Current Status
Lagos Region Lagos Region Lagos Region
S/n Airport Category
1 MMIA, Lagos International
2 Ibadan Airport Domestic
3 Ilorin Airport Domestic
4 Akure Airport Domestic
5 Benin Airport Domestic
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Current Status -contd.
NNAMDI AZIKIWE INTL AIRPORT, ABUJA
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Current Status -contd.
Abuja Region Abuja Region Abuja Region
S/n Airport Category
1 NAIA, Abuja International
2 Kaduna Airport (including Zaria Aerodrome) Major Domestic
3 Minna Airport Domestic
4 Jos Airport ( Bauchi Airstrip) Domestic
5 Makurdi Domestic
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Kaduna Airport
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Current Status
Kano Region Kano Region Kano Region
S/n Airport Category
1 MAKIA, Kano International
2 Maiduguri Airport Major Domestic
3 Yola Airport Major Domestic
4 SA A, Sokoto Major Domestic
5 Katsina Airport Domestic
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KANO AIPORT
KANO AIRPORT TERMINAL BUILDING
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Current Status -contd.
Port Harcourt Region Port Harcourt Region Port Harcourt Region
S/n Airport Category
1 PHIA, Port Harcourt International
2 Enugu Airport Major Domestic
3 MEIA, Calabar Major Domestic
4 SMICA, Owerri Domestic
5 Osubi Airport Domestic
Osubi Airport is managed by Shell
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Port Harcourt International
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PHIA Domestic Terminal
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(No Transcript)
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Aviation Statistics (2001-2007)

• The following presents the aviation statistics
  as recorded by FAAN over the period 2001 till
  2007.
• The area of Airport Operation Information is to
  be bolstered by the introduction of our ultra
  modern robust Airport Operations Database (AODB)
  with an Electronic Data Capture/Interchange
  module.

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Aviation Statistics (2001-2007) -contd
YR PAX AIRCRAFT CARGO MAIL
2001 5.22m .13m 45.19m 11.35m
2002 6.05m .14m 52.55m 2.92m
2003 7.13m .17m 65.12m 5.86m
2004 8.14m .20m 71.81m 12.63m
2005 8.31m .19m 106.72m 19.84m
2006 8.08m .18m 105.86m 19.82m
2007 8.41m .18m 103.85m 34.12m
Weight in Kg
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Our Contribution to Nigerian Economy2001-2007
YR AERO (N) NON-AERO.(N) TOTAL (N)
01 5.76bn (81) 1.38bn (19) 7.14bn
02 7.18bn (85) 1.23bn (15) 8.4bn
03 9.30bn (85) 1.67bn (15) 10.98bn
04 10.34bn (75) 3.49bn (25) 13.83bn
05 11.27bn (75) 3.73bn (25) 15.00bn
06 12.14bn (78) 3.37bn (22) 15.51bn
07 12.70bn (81) 2.99bn (19) 15.69bn
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OUR OUTLOOK
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Focus Short Term

• Sustained and continuous debt recovery
• Sustained and continuous fund management
• Full Automation of the four International
  Airports for improved and efficient revenue
  generation
• Improved relationship with all stake holders
• Revamp the Airport and its environs thus ensuring
  clean and comfortable travel experience

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Focus Short Term -contd.

• Rehabilitation of PHIA,MMA Runway 18L and MAKIA
  Domestic Terminal.
• ICAO and FAA Category 1 certification for MMA
• Improved service delivery to the travelling
  public our clients
• Training and retraining of staff on mandatory
  programs for airport certification

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Degreasing of Apron at MMA
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Focus MediumTerm

• Infrastructural improvement.
• Improvement in fire and Safety management at all
  airports.
• Create incentives for Private-Public Partnerships
• Increased Non-Aero Revenue

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Focus LongTerm

• To make all the Airports under FAAN Management
  viable.
• Automation and integration of all airports with
  Headquarters.
• Seamless communication
• Expansion of infrastructure provision
• Acquisition of long-term financial facility from
  Developmental Banks. E.g. ADB,etc

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2007 BUDGET PERFORMANCE
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Revenue Sources PerformanceJAN-DEC 07
SOURCES GEN-ERATED COLL-ECTED. BAL-ANCE VAR
Aeronautical 12.71bn 11.02bn (1.68bn) (15.25)
Non-Aeronautical 2.98bn 2.518bn (0.47bn) (18.47)

TOTAL 15.69bn 13.54bn (2.15)bn (15.85)
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REVENUE BUDGET Vs
ACTUAL FOR JAN. DEC. 07
REV. HEADS BUD-GET GEN-ERATED. BAL-ANCE. VAR.
Revenue 18 15.69 (2.31) (14.75)
FGN Appropriated Fund 9.93   (9.94) (0.00)
TOTAL 27.94 15.69 (12.24) (78.10)
All Revenue in Billion Naira
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EXPENDITUREBUDGET Vs ACTUAL FOR
JAN. DEC. 07
EXP. HEADS BUDGET (bn) ACTUAL (bn) BAL. (bn) VAR ()
Personnel 7.54 6.14 1.41 (4.82)
Overheads 6.74 6.41 0.33 (5.15)
Capital Projs. (IGR)Debts 3.72 2.71 1.01 (37.18)
Appr.Capital Projects 9.94   (0.00)
TOTAL 27.94 15.26 2.75 (71.08)
- Enbloc deduction by AGF
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Performance Summary -contd.

• We budgeted a total revenue of N18bn from IGR and
  N9.936bn as anticipated FGN Appropriation,
  totalling N27.936bn.
• As at end of the year, Total IGR was N16.329bn,
  i.e (71.08) of Budgetted Expenditure.

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Performance Summary -contd.

• The shortfall on revenue generation is due to
• Revocation of licenses of some Airlines due to
  non-compliance of NCAA Regulations.
• Commencement of operations at BOT Terminal
• Grounding of aircraft in the Airlines fleet due
  to none airworthiness.

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2008 BUDGET HIGHLIGHTS
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2008 Budget Focus

• Upgrading, renewal and maintenance of the
  Runways, Perimeter Fences, Terminal buildings and
  other infrastructures and equipments so as to
  improve the Airports efficiency, capacity
  utilization and also attain the ICAO standards.
• Improvement in safety, security, facilitation,
  fire fighting and prevention measures

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2008 Budget Focus -contd.

• Improvement in automation and information
  technology
• Improvement in Human Resource Management and
  effectiveness for efficiency.

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BUDGETED REVENUE 2008
Head Amount
i IGR
Aero. 17.52bn
Non. Aero. 6.48bn
24.00bn
ii FGN Appro. (MTSS) 1.40bn
TOTAL 25.40 bn
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BUDGETED EXPENDITURE 2008
Head Amount
i Personnel 8.17bn
ii Overheads 7.07bn
iii IGR Capt. Proj., Capt. Debts.,Safe Tower Loan 8.76bn
iv FGN Appro. Capt Projects 1.40bn
TOTAL 25.40 bn
The Overhead costs include contribution of 5
landing fees to NIMET and operating surplus to
FGN.
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FINANCIAL STATEMENT 2004-2007
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Financial Statements

• The set of accounts for years 2007 and 2006 are
  yet to be audited, but we have a fully audited
  report for 2004 and 2005 as presented here.

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INCOME PROFILE
  2007 2006 2005 2004
Aeronautical Sources 11.26bn 10.14bn 9.60bn 9.68bn
Non-Aeronautical 4.43bn 5.35bn 5.66bn 4.85bn
Sub-Total 15.69bn 15.49bn 15.29bn 14.43bn
- Audited - Un-Audited
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EXPENDITURE PROFILE
  2007 2006 2005 2004
Staff Cost 7.25bn 9.36bn 6.79bn 6.34bn
Power Fuel 1.13bn 1.40bn 1.46bn 1.27bn
Repairs Maint. 1.64bn 2.71bn 2.25bn 2.11bn
Other Op. Cost 6.18bn 5.87bn 4.31bn 3.81bn
Financial Charges 0.01bn 0.01bn - 0.02bn
Total 16.21bn 19.35bn 14.81bn 13.55bn
- Audited - Un-Audited
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ON-GOING PROJECTS
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PROJECT HIGHLIGHTS

• There are over 180 projects on-going at
  various stages of completion across the Airports.
• We have been striving to meet-up with our
  payments as much as we can while prioritising in
  the light of the Budgetary constraints

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PROJECTS HIGHLIGHTS

• Resurfacing of MMIA Domestic Runway
• CARGO Apron expansion at MMIA
• Water Supply Improvement at MMIA
• New Domestic Terminal at MAKIA
• PHIA Terminal Rehabilitation, Apron Expansion,
  Runway Resurfacing and Power Improvement
• Procurement of 20 Fire Tenders
• Cat II AFL Installation at SMICA

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MMIA PROJECT HIGHLIGHTS
Project Cost (bn) Amt Cert. (bn) Status
Runway Resurfacing 3.56 1.78 70
Cargo Apron Expansion 0.85  0.43 20
Water Supply 0.30 Awaiting FEC approval
Power Project 0.17 0.07
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MMA Runway 18/L undergoing resurfacing
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PHIA PROJECT HIGHLIGHTS
Project Cost (bn) Amt Cert. (bn) Status Complet-ion Date
Runway Overlay 3.00 2.28 bn 90
AFL Cat III. 0.92  0.46 bn 0
Apron Expansion 0.54 Awaiting FEC approval
Power Improv. 0.74 0.362bn
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MAKIA PROJECT HIGHLIGHTS
Project Cost Amt Cert. Status Completion Date
Domestic Terminal Building Completion 762.7m 547.7m 75
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ENUGU AIRPORT PROJECT HIGHLIGHTS
Project Cost Amt Cert. Status
Runway resurfacing, Expansion and Extension 6bn Tendering
Airfield Lighting CAT II 960m Tendering
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KADUNA AIRPORT PROJECT HIGHLIGHTS
Project Cost Amt Cert. Status
Runway resurfacing 3bn Tendering
Airfield Lighting CAT II 960m Tendering
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CHALLENGES

• Decayed and decaying Airport Infrastructure
• Crippling Indebtedness to Contractors.
• Rising Debt profile of Government Agencies and
  Airlines to FAAN
• Appropriate Right Staffing
• High Wage-Revenue Ratio
• Dwindling Revenues
• High rate of Litigation and its attendant cost.
• Uncompleted Projects

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Challenges -contd

• Funding of mandatory programs for Fire, AVSEC and
  Operations staff for airport certification.
• Funding Pensions Liability gap of about N30bn.

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Opportunities
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Opportunities

• Investment opportunities abound in Nigeria
  airports for both local and foreign investors.
• The scope for growth is vast, especially in the
  non-aero sector as seen in the ratio of Aero to
  Non-aero revenue which is 8515
• Most airports worldwide generate up to 50 of
  their revenue from Non-Aero Sources. Investment
  in Airports infrastructural facilities top list
  of such opportunities as listed below -

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Opportunities -contd

• Construction and management of terminal building
  already, Bi-Courtney and Associates has started
  the operation of the first Build Operate and
  Transfer (BOT) MMA Domestic Terminal 1.
• Construction of Runways, taxiways and aprons
• Construction and management of helipads.
• Construction and management of Independent Power
  Plants (IPP)

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Opportunities -Contd
PROPOSED PROJECTS PROPOSED LOCATION
Hotel/Holiday Inns /Resort Centres Lagos, Abuja, Bauchi, Jos, Port Harcourt, Owerri, Calabar, Ilorin
Cargo complex/Warehousing Calabar, Lagos, Kano, Abuja, Port Harcourt, Akure, Yola, Jos, Owerri, Ilorin
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Opportunities -Contd
PROPOSED PROJECTS PROPOSED LOCATION
Duty Free Shops Lagos, Kano, Port Harcourt, Abuja, Calabar
Aviation Fuel Depots Abuja, Kano, Port Harcourt
Water Bottling Plants Jos, Kaduna, Abuja, Akure
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Opportunities -Contd
PROPOSED PROJECTS PROPOSED LOCATION
Interline Offices Lagos, Kano, Port Harcourt, Abuja, Calabar
Cold Storage facilities Jos, Yola, Owerri, Lagos, Abuja, Kaduna, Ilorin
Shopping malls Kano, Ibadan, Lagos, Yola, Abuja, Port Harcourt
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Opportunities -Contd
PROPOSED PROJECTS PROPOSED LOCATION
Avio-bridges Lagos,PortHarcourt,Abuja
Independent Power Projects Lagos, Abuja, Port Harcourt, Kano
Hangars(Aircraft maintenance facility) / FBOs Lagos, Abuja, Ilorin, Ibadan, Maiduguri, Port Harcourt, Kaduna
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Opportunities -Contd
PROPOSED PROJECTS PROPOSED LOCATION
In-flight catering complexes Kano, Abuja, Lagos, Port Harcourt
Airport Advertising All Airports
Cargo Management Lagos, Abuja, ,Kano, Ilorin,Calabar, Port Harcourt
Car Park Development and Management All Airports
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Opportunities -Contd
PROPOSED PROJECTS PROPOSED LOCATION
Petrol Stations Port Harcourt, Abuja, Ibadan, Ilorin, Akure
Fish/Agric Farms All Airports
Housing Estate/Amusement Park/Conference Centre All Airports
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Opportunities -Contd
PROPOSED PROJECTS PROPOSED LOCATION
Multipurpose Hall Enugu, Minna, Abuja,PortHarcourt,Lagos
Public Gallery Murtala Mohammed Airport, Lagos
Internet Café / Cyber Café Lagos, Port Harcourt, Abuja, Kano, Owerri, Enugu, Calabar
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Opportunities -Contd
PROPOSED PROJECTS PROPOSED LOCATION
Tourist attractions All Airports
Surface/ground transportation (taxis,shuttle buses, trucks, train, etc.) All Airports
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10 Reasons why you should do business with FAAN

• The ratio of Aeronautical revenue to Non
  Aeronautical revenue in the sector is still about
  8515, whilst world over Non-Aero revenue is
  averages 50, hence there is great scope for
  growth.
• There is a direct linkage between economic
  prosperity, population growth and
  airport/airline/tourism activities.

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10 Reasons why you should do business with
FAAN -contd

• A number of indices can make FAAN and, by
  extension, tourism attractive and flourishing.
  Investors will find the new improved airports and
  Nigeria generally a haven for the following
  reasons-
• Stable democratic government
• High population (Over 140 million people)
• Diversified economy (farming, mining,
  manufacturing etc.)

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10 Reasons why you should do business with
FAAN -contd

• Diverse and rich cultural heritage
• Potentially popular tourist destinations, a
  country of scenic beauty with airport connections
  e.g. in Cross River, Bauchi, Kwara, Osun,
  Plateau,Taraba and Adamawa states.
• Good export potential in Agricultural produce and
  Solid Minerals (cargo)

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10 Reasons why you should do business with
FAAN -contd

• The Governments current support for growth in
  aviation and tourism industries is a tonic
• Huge investment potential in all facts of the
  economy
• Friendly populace.
• World-class hotels/restaurants are available
  everywhere in Nigeria.

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Charges / Tariff Comparison
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Aircraft Parking Charges
Country Airport Charge (US)
Ghana Accra 0.15 per ton/hr 1st hr Free,
Egypt Cairo 17per/hr
CoteDvoire Abidjan 0.06per ton/hr
UAE Dubai 0.75 per/day
Nigeria Lagos 0.14 per ton/hr
Cameroon Douala 0.2728per ton/hr
S.Africa Jborg 139.76 per day
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Passenger Service Charge
Country Airport Intl (US) Dom (Naira)
Egypt Cairo 12.86 N/A
Ghana Accra 50.00 12.57 (0.0977)
Cote Dvoire Abidjan 23.38 754 (5.86)
Nigeria Lagos 35.00 350 (2.72)
S. Africa JBurg 18.44 814.5 (6.33)
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• Thank you.