Business & Economy

FAAN Achieves 82.5% Revenue Increase in 2024 under Olubunmi Kuku’s Leadership

Published

2 months ago

Mar 4, 2025.

Upon assuming the role of FAAN MD, Kuku wasted no time in addressing revenue leakages and streamlining operations to eliminate long-standing inefficiencies. Her decisive actions have significantly bolstered the agency’s financial standing.
She listed some of these challenges to include aging infrastructure, security challenges and land encroachment. She said: “Many of FAAN’s facilities, including terminals and runways, are aging and in need of significant repairs and upgrades.

The Federal Airports Authority of Nigeria (FAAN) has made significant strides in enhancing its revenue generation, as revealed by Managing Director Olubunmi Kuku.

Eko Hot Blog reports that from January to November 2024, FAAN generated ₤343.870 billion, reflecting an impressive 82.5% increase in performance and a ₤155.487 billion difference compared to 2023.

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This revelation is particularly encouraging given the organization’s previously limited revenue sources, which primarily stemmed from non-aeronautical avenues and relied heavily on airports in Lagos, Abuja, and Port Harcourt.

Upon assuming the role of FAAN MD, Kuku wasted no time in addressing revenue leakages and streamlining operations to eliminate long-standing inefficiencies.

Her decisive actions have significantly bolstered the agency’s financial standing.

At a recent stakeholders’ meeting called by Minister of Aviation and Aerospace Development, Festus Keyamo, plans for the concession of some Nigerian airports were discussed.

Upon assuming leadership of the Federal Airports Authority of Nigeria (FAAN), Olubunmi Kuku launched a series of strategic initiatives to optimize the agency’s operations and financial performance.

Key measures included re-evaluating and adjusting tariffs for aeronautic and non-aeronautic services at airports to align with current economic conditions, streamlining revenue generation processes, reassessing concession agreements, and implementing flexible pricing structures that consider operational costs.

Additional accomplishments under Kuku’s direction include the completion and testing of the multilevel car park at Nnamdi Azikiwe International Airport in Abuja, as well as the implementation of prepaid meters for concessionaires, government agencies, and armed forces to mitigate revenue leakage.

Emphasizing FAAN’s role as both a national asset responsible for managing airport infrastructure and a catalyst for economic development, Kuku acknowledged that the agency still faces challenges affecting its operational capacity and efficiency.

Olubunmi Kuku

She listed some of these challenges to include aging infrastructure, security challenges and land encroachment.

She said: “Many of FAAN’s facilities, including terminals and runways, are aging and in need of significant repairs and upgrades.

This affects operational efficiency and safety, and necessitates substantial investment for modernisation.

“Despite efforts to enhance security at airports, FAAN continues to face challenges in managing security risks, particularly with the increase in air travel and the potential for terrorist activities or other threats at key airport locations.

Due to lack of perimeter fence, the Authority landmass is constantly being encroached on all over the country.

“There is CCTV inadequacy inadequate staff training quarterly with the requisite skills, and knowledge to maintain equipment and also cope with modern technologies.

She equally lamented that FAAN struggled with a shortage of staff across various directorates which impacts its ability to effectively manage operations, maintenance, and customer service, hinting that the under- resourcing of critical roles hinders the agency’s ability to meet the growing needs of the aviation industry.

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