FAAN Remits N2bn to Consolidated Revenue Account

The Federal Airports Authority of Nigeria (FAAN) yesterday
disclosed its revenues and expenses for the year 2020, revealing
that it remitted N2billion into the Consolidated Revenue Fund (CRF)
account between January and September 2020.

The Managing Director of FAAN, Captain Rabiu Yadudu, made this
known when members of the House of Representatives Committee on
Aviation visited the agency in Lagos, saying that the management
operates in financially austere environment and therefore does not
have any operating surplus currently.

Yadudu used the opportunity of the visit to appeal to the
committee to expedite action on legislations that would help the
agency fast track its operations across the country’s airports,
including exempting the agency from paying operating surplus to the
government coffers.

“FAAN does not have operating surplus. However, between January
and September 2020, the authority has remitted about N2 billion to
the Consolidated Revenue Fund (CRF) account. The authority is also
mindful of the National Assembly committees on Aviation in ensuring
that FAAN is exempted from payment of operating surplus to the
federal government. Exception of FAAN will guarantee that the
revenue generated by the airports is transparently reinvested
wholly in operating and developing airport facilities in compliance
with International Civil Aviation Organisation (ICAO) standards and
recommended practices on airport generated revenue,” he said.

According to the FAAN boss, as at September 30, 2020, the
organisation generated a total of N30,084,235,670, during the nine
months target set, out of which N27,967,455,341 was actual
collection.

“From this amount, N17,610,732,427 was from Aeronautical source
of revenue, N5,776,622,874 from non-aeronautical sources and
N5,242,434,128 recovered from outstanding debts owed. From January
to September 2020, the revenue target of Aeronautical source was
N38,988, 439,354 and actual generation totaled N17,823,332,992 out
of which N17,610,732,478 is actual collection giving a percentage
performance of 98.81 on revenue collected over generated.

“The authority is shifting focus from Aeronautical sources of
revenue to non-aeronautical, FAAN is presently operating at only
about 30 per cent of its pre-COVID-17 capacity. The authority has
set up a revenue task force to aggressively drive revenue, follow
up on outstanding debts owed and explore all possible investment
opportunities”, he said.

He called on the lawmakers to give accelerated attention to the
agency’s budget saying, “The 2021 IGR budget was submitted to the
committee for consideration, we believe that early consideration
and passage will enable achieve better in 2021.”

Yadudu explained that Nigeria is expected to be a hub in
West/Central Africa sub-region, but this could only be met through
more funding for provision of modern infrastructure and
technology.

“The aviation agencies will urgently need intervention funds
from the federal government to address infrastructural gaps and
position the industry for better service delivery and contribution
to the national economy, on this note, we seek your assistance in
this area and the other aforementioned areas”

The FAAN Managing Director also refuted on going rumour that the
agency has been paying half salary, insisting that the workers earn
their full salary, contrary to the reports indicating
otherwise.

The Federal Airports Authority of Nigeria (FAAN) yesterday
disclosed its revenues and expenses for the year 2020, revealing
that it remitted N2billion into the Consolidated Revenue Fund (CRF)
account between January and September 2020.

The Managing Director of FAAN, Captain Rabiu Yadudu, made this
known when members of the House of Representatives Committee on
Aviation visited the agency in Lagos, saying that the management
operates in financially austere environment and therefore does not
have any operating surplus currently.

Yadudu used the opportunity of the visit to appeal to the
committee to expedite action on legislations that would help the
agency fast track its operations across the country’s airports,
including exempting the agency from paying operating surplus to the
government coffers.

“FAAN does not have operating surplus. However, between January
and September 2020, the authority has remitted about N2 billion to
the Consolidated Revenue Fund (CRF) account. The authority is also
mindful of the National Assembly committees on Aviation in ensuring
that FAAN is exempted from payment of operating surplus to the
federal government. Exception of FAAN will guarantee that the
revenue generated by the airports is transparently reinvested
wholly in operating and developing airport facilities in compliance
with International Civil Aviation Organisation (ICAO) standards and
recommended practices on airport generated revenue,” he said.

According to the FAAN boss, as at September 30, 2020, the
organisation generated a total of N30,084,235,670, during the nine
months target set, out of which N27,967,455,341 was actual
collection.

“From this amount, N17,610,732,427 was from Aeronautical source
of revenue, N5,776,622,874 from non-aeronautical sources and
N5,242,434,128 recovered from outstanding debts owed. From January
to September 2020, the revenue target of Aeronautical source was
N38,988, 439,354 and actual generation totaled N17,823,332,992 out
of which N17,610,732,478 is actual collection giving a percentage
performance of 98.81 on revenue collected over generated.

“The authority is shifting focus from Aeronautical sources of
revenue to non-aeronautical, FAAN is presently operating at only
about 30 per cent of its pre-COVID-17 capacity. The authority has
set up a revenue task force to aggressively drive revenue, follow
up on outstanding debts owed and explore all possible investment
opportunities”, he said.

He called on the lawmakers to give accelerated attention to the
agency’s budget saying, “The 2021 IGR budget was submitted to the
committee for consideration, we believe that early consideration
and passage will enable achieve better in 2021.”

Yadudu explained that Nigeria is expected to be a hub in
West/Central Africa sub-region, but this could only be met through
more funding for provision of modern infrastructure and
technology.

“The aviation agencies will urgently need intervention funds
from the federal government to address infrastructural gaps and
position the industry for better service delivery and contribution
to the national economy, on this note, we seek your assistance in
this area and the other aforementioned areas”

The FAAN Managing Director also refuted on going rumour that the
agency has been paying half salary, insisting that the workers earn
their full salary, contrary to the reports indicating
otherwise.