The promotion of its cashless policy in the revenue generation of the Federal Airports Authority of Nigeria (FAAN) has enabled the agency to plugged loopholes in the system while it optimises its revenue collection, reduce cost and promote efficiency, the agency has disclosed.
FAAN also revealed that the new terminal at the international wing of the Murtala Muhammed Airport (MMA) in Lagos, being constructed by the China Civil Engineering Construction Corporation (CCECC) would be commissioned by February 2021.
Managing Director of FAAN, Capt. Rabiu Yadudu told visiting federal lawmakers during a facility tour of Lagos airport.
that the management had taken some critical steps to improve revenue generation and curb spending in recent months.
Parts of the steps Yadudu explained included the suspension of procurement of non- essential items, reduction in all staff related costs to the barest minimum and aggressive debt recovery drive, which he said was hampered by the Covid-19 pandemic.
Others according to him are plugging of revenue loopholes, cash and fly policy promotion and enforcement of cashless policy and the continuous strengthening of Business and Operational Excellence by improving on people, processes, platforms and performances.
“I will like to say that aviation business is a global, technical and highly regulated with huge infrastructure requirements; furthermore, it is necessary to reiterate that aviation business is driven by volumes and turnaround with operating profit margin of between 2.5 per cent to 5 per cent. Without the required volumes and traffic, it will be difficult to breakeven, he said.
Chairman, House Committee on Aviation, Mr. Nnolim Nnaji, however commended FAAN for steps taken so far to improve services for airlines, air travellers and other users of the airports nationwide.