Airports Concession: FAAN Clears Air On Corruption Allegations

The Federal Airport Authority of Nigeria has debunked reports of corruption in its plans to concession the country’s four viable airports to a third party.

A national daily had said nine past Managing Directors of FAAN allegedly called the plan a contravention of Agreement with China on $500m loan for the construction of the new terminal buildings at  Murtala Muhammed Airport, Lagos, Aminu Kano Airport, Kano, Nnamdi Azikiwe International Airport, Abuja, Port Harcourt and Akanu Ibiam International Airport, Enugu.

The past Chief Executive Officers/Managing Directors according to the report identified the “mezzanine clause” in all the terms of the Chinese sponsored infrastructure. 

The Mezzanine clause confers  the lender the right to convert a debt to an equity interest in the company in case of default.

Based on the mezzanine clause, if Nigeria fails to repay the loans when due, China takes over the airports, administer and recover their money.

The report also quoted the MDS said, “The most reasonable thing to do is for FAAN to administer them, collect the revenue and pay back the loan. It is preposterous for the Minister of Aviation to propose to concession the same terminal buildings to a third party which will come to reap where they did not sow a single penny, while the debt liability will be transferred to FAAN and the Federal Government to pay.”

The report  listed the past MDs to include: Alhaji Ibrahim Mamman, Alhaji Sani Baba,  John Sule Ozenua, Engineers Lawrence Adimonye, Isaac Sakpere, Muhammad Sadiq, Olufemi Shittu, Rabiu Baba and Arc M.A. Enigbokan.

But FAAN in a monitored tweet on Thursday said the allegation was “not only false but also baseless.”

The regulator said only three former Chief Executives of the Authority appeared before the Senate Committee on Aviation, “solely for the purpose of contributing to the amendment process of the new FAAN Act being proposed.”

FAAN noted that none of its former heads have in recent times appeared before any House of Representatives committee for any reason, including discussion on the planed concession.

“The three former Chiefs that appeared before the Senate Committee have stated in clear terms. that the issue of airports concession did not even come up at all at the said meeting,” FAAN added.