2 months ago
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The Nigerian aviation sector has undoubtedly undergone significant changes over the past decade, with the COVID-19 pandemic marking a pivotal moment. The pandemic led to a near-complete shutdown, as public health concerns took precedence over economic and leisure activities. However, while pandemic-related restrictions have since eased, the sector still faces challenges, including sluggish investment, poorly planned airport construction by regional authorities, and unresolved financial commitments by stakeholders. These factors have compounded existing issues, such as high operating costs and outdated infrastructure, making recovery efforts more complex.
In the aftermath of the pandemic, the aviation industry has been grappling with how to regain momentum. Although international travel has picked up and airlines are seeing increased passenger numbers, the lack of coherent investment strategies and the economic downturn have affected overall sector growth. Stakeholders have been pushing for more private-sector involvement to address these lingering issues, particularly in expanding infrastructure and modernising operational models.
It was in this challenging context that Mrs Olubunmi Kuku, an MBA graduate from DePaul University’s Kellstadt Graduate School of Business, was appointed in December 2023 as the first female Managing Director/Chief Executive of the Federal Airports Authority of Nigeria. Her appointment marks a significant moment in Nigeria’s aviation history, signalling a shift towards more inclusive leadership within a traditionally male-dominated industry. Mrs Kuku has quickly established herself as a passionate advocate for the sector, bringing both optimism and a strategic vision to the role.
At the recent 2024 Airport Business Summit and Expo, Kuku addressed the current state of the aviation sector, focusing on its strengths while acknowledging the substantial challenges ahead. In her speech, she highlighted the sector’s global economic influence, describing how it plays a vital role in driving GDP growth not just in Nigeria but worldwide. She drew attention to industry reports predicting that global passenger traffic would surpass pre-COVID levels by 2024, with Africa’s air traffic expected to see substantial growth by 2025. This growth, she suggested, represents a significant opportunity for Nigeria to solidify its position as a key player in the global aviation landscape.
Kuku further emphasised that, despite the challenges, the safety and security of Nigerian airports remain paramount. “We face challenges, but I want to be clear: our airports are safe. Some may say, ‘You’re not an aviator, so what do you know?’ Well, I’m managing a company, and I rely on the experts around me. We conduct regular friction tests, with a strict schedule known by every airport manager. If there’s an anomaly, we repeat the test. If you know anything about me, you know I will never compromise on safety.”
In addition to focusing on safety, Kuku also addressed some of the more pressing issues plaguing the sector, including cross-subsidisation among Nigerian airports. This refers to how profitable airports help fund the operations of less profitable ones, a strategy that has been criticised for creating inefficiencies. She acknowledged that expanding airport infrastructure alone does not guarantee increased revenue, noting that passenger traffic is closely tied to economic development. To ensure the sustainability of Nigeria’s airports, she advocated greater collaboration between the private sector and sub-national entities. She emphasised that public-private partnerships could be the key to unlocking the potential of underutilised airports across the country.
At the same time, Kuku tackled the sensitive yet largely misunderstood issue of concessions, a hotly debated topic in the sector. Concessions involve private-sector management of public assets, and in Nigeria’s case, it has been a point of contention. She acknowledged stakeholder concerns, particularly fears that private entities could prioritise profits over public interest. However, she underscored the necessity of private-sector involvement, given the sheer scale of investment required to sustain the aviation sector.
Kuku explained, “I often remind people it’s not just about building airports. Passenger traffic is closely tied to economic growth. Despite this, Nigeria faces economic challenges—fluctuations, inflation—yet our geographic position places us in a prime spot to drive connectivity across Africa and globally, which is key to ensuring our airports’ viability.”
Kuku went on to clarify the concept of concessions, explaining that they are not a one-size-fits-all solution but rather one of many options that can be explored. “The fears about concessions are valid, but I can categorically tell you that the investment needed to sustain the aviation sector in Nigeria cannot come from the government alone. It’s absolutely impossible. What I call for is for us together to explore the private-sector models that actually work and put in place legal frameworks that allow those models to benefit FAAN, while also protecting the sector.”
Furthermore, she pointed to successful examples of concession models globally, particularly in the United Arab Emirates, where management contracts have brought in technical expertise and enabled airport expansion. Kuku also advocated joint ventures and public-private partnerships, stating that these could be tailored to the specific needs of Nigerian airports.
In addition, Kuku revealed that FAAN is actively considering incentives for airlines, such as reducing landing and parking fees at smaller airports. This move, she explained, would help reduce congestion at major hubs like Lagos Airport while encouraging local operators to use regional airports as operational bases.
Kuku’s vision extends beyond passenger traffic, as she has also been a strong advocate for boosting Nigeria’s air cargo sector. She has been in discussions with state governors, private investors, and logistics operators to explore the untapped potential of air cargo. “Nigeria has primarily been an import-driven market, but there are significant opportunities in exports. We’ve begun exploring these through automation and private-sector collaboration,” she stated. She believes that by streamlining logistics and investing in modern technology, Nigeria can significantly increase its air cargo exports, positioning the country as a major player in the regional and global markets.
In her closing remarks, Kuku made a strong case for a comprehensive approach to improving airport viability. She reiterated that collaboration is key, emphasising the importance of partnerships with state governments, private sector players, and international stakeholders. She also stressed the need for continuous innovation in areas such as infrastructure, regulation, and route development. “By working together, we can unlock the full potential of our airports, ensuring their long-term sustainability. The challenges are significant, but not insurmountable. With the right strategies and partnerships, we can transform our airports into vibrant economic hubs that drive national development and connect Nigeria to the world.”
She concluded with a passionate call to action: “The time is now! Let’s build a brighter future for Nigeria’s aviation industry together.”
Olorunpomi is a media advisor
