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We are still doing business with over 100 concessionaires – FAAN

By on July 7, 2013

The Federal Airports Authority of Nigeria (FAAN) says contrary to insinuations that it is not investor-friendly, especially going by its habit of pulling out of contractual agreements, the agency said it currently has mutually beneficial business relationship with over 100 concessionaires in its facilities nationwide.

This clarification was made by the General Manager, Corporate Communications, Yakubu Dati, following the dust raised by the currently face-off between FAAN and Maevis Nigeria Limited, a concessionaire, on one hand; and AIC and FAAN on the other hand. Expectedly, both of them have resulted into legal battles.

Giving a breakdown of its various outsourced facilities, Dati said 69 concessionaires or facility managers are located at the MMIA, Lagos in different capacities, as service providers, to either FAAN or members of the public directly.

He added that the rest of the facility managers are spread across other airports in the country.

According to him, “A sizable proportion of these organisations work directly in aeronautical related areas, while others have shifted attention, in recent times, to non-aeronautical areas, in conformity with standard economic practice, in the industry worldwide. This has served to explore opportunities ignored and helped to improve the FAAN’s revenue base.”

All these facility managers, he said have been carrying out their lawful business unhindered, lamenting that a tiny fraction of these facility managers had lopsided contractual and in some cases fraudulent agreements with past administrations in FAAN.

In his words: “Such agreement were not in the best interest of the nation, neither do they profit FAAN, as they are set out to either cheat FAAN, or out rightly arm-twist the authority into perpetual bondage.”

He alleged that the tiny fraction of criminally-minded facility managers, who had lopsided agreements and have refused to correct the imbalance are the ones that have been making the loudest noise.