Former Managing Director of the Federal Airports Authority of Nigeria (FAAN), Dr. Richard Aisuebeogun, has declared that airport concession is no longer a choice but an inevitable strategy if Nigeria is to modernise its airports, attract investment and compete globally.
Presenting a paper titled “Airport Concession: The Inevitable” at the Airport Business Summit in Lagos, Aisuebeogun said governments across the world are increasingly embracing private sector participation because airports perform better when operated as commercial businesses rather than government agencies.
He cited data from Airports Council International (ACI) Europe showing that by 2015, about 205 European airports had private shareholders, representing 22 percent of airports in the region, a development he described as evidence of the growing confidence in private investment.
According to him, “Airport makes an excellent investment if and when properly managed as a business,” stressing that commercialisation encourages competition, improves operational efficiency and accelerates infrastructure development.
He added that “when airports are run as a business, that is when they become an economic catalyst. If they are not run as a business, they become a drawback to the growth of the region.”
Drawing examples from Greece, Spain, Peru, Argentina, Brazil and Mexico, Aisuebeogun said concession agreements have transformed airports into world-class facilities.
He noted that Peru’s Lima Airport concession requires 47 percent of airport revenue to be remitted to the government, while Mexico granted 50-year concession agreements for groups of airports, with options for renewal.
The Former FAAN boss, also highlighted Brazil’s model, where concessionaires pay 5 percent of annual airport revenue in addition to concession fees while assuming full responsibility for airport operations and future investments.
Aisuebeogun argued that governments are under increasing pressure to reduce public spending and mobilise private capital, making airport concession a practical solution.
However, he acknowledged concerns such as resistance to privatisation, transition challenges and the risk of poor investment by concessionaires, stressing that regulatory agencies must ensure compliance with concession terms.
“The truth is that it is inevitable that our airports have to be privatised,” he said, adding that effective public-private partnerships would improve operational performance, enhance customer service, reduce risks, maximise returns and stimulate broader economic growth.