FG grants Port Harcourt airport 30-year concession to boost revenue, efficiency

The Federal Government has signed a 30-year concession agreement for the Port Harcourt International Airport as part of efforts to attract private investment, improve operations and increase revenue from airports operating at a loss.

The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this yesterday in Abuja during the signing of the agreement with Port Harcourt Airport Company Limited.

Keyamo said the concession was designed to improve the airport’s operational efficiency, increase revenue generation and maximise its commercial potential.

He explained that the Federal Government had been relying on profits from major airports to subsidise the operations of other airports that were recording losses.

The minister said the concession was part of efforts to reduce the financial burden on the government while ensuring better management and improved performance of the nation’s airports.

“Some of our airports are being run at a loss. We make so much money from some of our primary airports, and most of those profits are ploughed into running other airports,” Keyamo said.

He noted that the concession had the approval of President Bola Tinubu and the Federal Executive Council, adding that the process was not a sudden decision but one that successive administrations had struggled to implement.

Keyamo said previous attempts to concession airports were frustrated by resistance from labour unions and court cases involving the government.

He, however, attributed the successful conclusion of the process to negotiations with aviation unions, saying the government had secured their agreement before signing the deal.

The minister assured workers that the concession would not lead to job losses or a reduction in their conditions of service.

He said Tinubu had directed that the welfare of aviation workers must be protected throughout the concession process.

“President Bola Tinubu was very concerned about that, that no worker should lose his job. The conditions of service should remain the same,” he said.

Keyamo added that the concessionaire would be subjected to performance reviews every five years to ensure compliance with the terms of the agreement.

He warned that the government could take back the airport if the concessionaire failed to meet the agreed standards.

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