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Secrets Reporters
In what looks like a bogus expenditure, the Federal Airport Authority of Nigeria (FAAN) has proposed to spend the sum of N17,999,999,998.00 on utility services in 2024.
The information was contained in the 48 Government Owned Enterprises (GOE) budget document. The GOEs are government-owned establishments involved in commercial activities. Due to the financial resources, they rake in for the government, they are also called “super agencies.”
Recall that the 2024 appropriation bill was passed by the National Assembly on December 30, 2023, while increasing the budget to 28.7 trillion Naira as against the earlier proposed amount by President Bola Ahmed Tinubu. It was revealed that FAAN intends to generate the sum of N285,200,891,511.84 and spend the sum of 142,600,445,742.94 on expenditures for the year 2024. The organization also wants to remit the sum of N114,080,356,604.74 to the government.
A breakdown of how FAAN will source the money revealed that among other items listed, the sum of N159,738,929,342.16, making bug of the internally generated revenue, will be gotten from passenger service charge (international), 21,451,087,906.80 (domestic), the sum of N5,018,375,684.76 will be sourced from the airport advert.
The sum of N4,018,181,443.08 will be obtained from a 4% customs airport levy. The access gate fee will generate N3,863,636,003.04 and N4,951,602,995.64 from the common user terminal equipment charge at the MMA. Also, the international landing will generate a total of N26,506,923,791.88, while debt recovery will yield the sum of N16,703,177,577.48.
It was discovered that for their expenditure, the organization, among other items on the list, intends to spend the sum of N17,999,999,998.00 for utility services, with miscellaneous expenditures gulping the sum of N3,844,999,999.00, maintenance service to take the sum of N13,973,157,443.00. It was revealed that expenses on recurrent overhead costs would amount to N64,917,610,242.78.
The Federal Airports Authority of Nigeria (FAAN), initially founded in 1976 as the Airports Authority of Nigeria, underwent significant organizational changes following the Civil Aviation reform in 1995.
This reform not only realigned several of the functions of the original authority but also led to the renaming of the entity as FAAN. Charged with the pivotal task of managing and maintaining all Federal Airports, FAAN has ensured operational excellence in Nigeria’s aviation sector.
While the Authority’s headquarters was traditionally situated in Lagos, a strategic relocation was orchestrated by then-President Muhammadu Buhari in 2020, moving the base of operations to Abuja.
Nevertheless, in a recent directive from President Bola Ahmed Tinubu’s administration, FAAN has been instructed to transition its headquarters back to its original location in Lagos State, marking another significant shift in its operational geography.
