Unprofitable ventures? 15 states spend N301 billion on airport projects

No fewer than 15 states have spent N301 billion on airports that failed to meet the yearly passenger traffic requirement per airport.

According to Vanguard, the airports, which are spread across the country, are underutilised as many hardly record daily flights while others only have a few chartered flights sometimes.

Constructed by state governments, they depend mainly on a few viable airports to survive, thereby corroborating the public outcry that often meets the decision of state governors to construct them.

Nigeria currently has 31 airports, with many operated by the Federal Airports Authority of Nigeria, FAAN, according to the Nigerian Civil Aviation Authority, NCAA.

Of this number, about 15 were built by state governments since 1999.

They include Asaba Airport, Mohammed Buhari Airport, Ebonyi, Akwa Ibom Airport, Uyo, Bayelsa International Airport, Ogun Cargo Airport, MKO Abiola International Airport, Osun, uncompleted, Ekiti Cargo Airport, Anambra Cargo Airport, Umuleri, Abia Airport, Wachakal Airport, Damaturu, and Dutse International Airport.

Others are Lafia Airport, uncompleted, Kebbi Airport, Auchi Airport, Edo State, uncompleted, Zamfara Airport, Nasarawa Airport and Gombe Airport.

Many first-generation airports built by the Federal Government during the military era also have profitability questions.

They include Makurdi, Port Harcourt, Enugu, Kano, Kaduna, Benin, Owerri, Jos, Sokoto, Maiduguri, Yola, Bauchi, Akure, Ibadan, Ilorin, Calabar, Minna and Katsina airports.

However, those built by the states, which were handed over to FAAN for management, it was learnt, only add financial burden to the agency given what aviation experts called unsustainability.

Recently, Director-General of NCAA, Captain Musa Nuhu, said the proliferation of state airports had placed a huge burden on the agency.

He said: “And these airports do not even generate money. Some airports have one or two flights a week. Some are even executive flights. Honestly, we must collectively find a way to deal with that because for me, even as NCAA, it is putting a lot of unnecessary pressure on us.”

Earlier, the Managing Director of FAAN, Captain Rabiu Yadudu, lamented that most of the facilities constructed by state governments are not commercially viable.

He noted that the continuous building of airports by governors constitutes a complex problem for the agency, saying NCAA, FAAN and Ministry of Aviation need to sit and address the issue.

Yadudu said:”An airport that needs N300 million a month (to maintain) and they have just 1,000 passengers a month, there is no magic that can make them sustainable and FAAN doesn’t have the money. I think in the national interest, let’s come up with a plan; Federal Government support, intervention, and others to make sure that if you build it if it is not workable now, one day, it will be sustainable because gradually, it will happen.

“This is a very complex situation. It is not a straight forward situation because to us at FAAN, the easiest option is to tell them not to build more state-owned airports, but whatever we do at FAAN, we look at the short and the long terms. “

Long before now, the viability of Nigerian airports had been a disturbing issue, given that instead of generating wealth, they drain the resources of the Federal Government.

Investigation shows that the bulk of funds FAAN uses in running all the airports are generated from Lagos airports.

Minister of Aviation, Mr Festus Keyamo, gave credence to the finding recently, saying 60 percent of the revenue of FAAN comes from Lagos.

Apart from depending on FAAN for survival, Vanguard gathered that some of the airports are often indebted to the agency, leading to a shortage of revenue.

The case of Gombe and Kebbi airports is a typical example of how state-built airports overburden FAAN.

Following alleged N731, 873, 721 million debt, FAAN threatened to withdraw essential services to the Gombe and Kebbi airports four years ago. The latter reportedly settled the debt in 2021.

Regardless of issues like this and the growing concerns about the necessity of more airports, state governors have continued to build more at the expense of dwindling resources.

Findings by Vanguard show that in the last 15 years, nearly N301 billion has been spent on airports aviation stakeholders described as unproductive across many states.

Zamfara scenario

The construction of the airports have always been embroiled in controversy as critics often accuse state governors of embezzling funds through such projects.

For instance, immediate past governor of Zamfara State, Bello Matawalle, is currently battling to clear his name from the allegation of siphoning money through the construction of Gusau International Cargo Airport.

His successor, Governor Dauda Lawal, accused Matawalle of misappropriating billions of naira through the abandoned cargo project built in the state.

Lawal alleged that Matawalle’s administration carried out dubious transactions of about N6, 775, 949, 561 .50 on the abandoned cargo airport project in Gusau.

However, Matawalle, who is now the Minister of State for Defence, has denied the allegation.

He described the claim as nothing but a calculated mischief and diversionary tactics.

The Minister stated his side of the story in a statement by a former Commissioner for Information in Zamfara State, Ibrahim Dosara.

“In the first instance, a bill of N28, 000, 000, 000 was submitted to government for consideration. However, due to the foresight and prudence of former Governor Matawalle, his government rejected the bill which the former Governor considered outrageous and crazy”, Dosara said.

“The former Governor, therefore, insisted that the amount be reviewed to considerable sum, which was downsized to N11, 000, 000, 000”

The Zamfara scenario is just one of the many controversies trailing the construction of airports by state governors.

A breakdown shows the cost of constructing the airports across the country irrespective of opposition from several quarters.

EBONYI: N36 billion

Immediate past Minister for Aviation, Hadi Sirika, conveyed the approval for the airport construction in a letter to then-Governor David Umahi, which was signed by the Director of Safety and Technical Policy, Capt. T A Alkali on behalf of the Ministry in 2019.

At the commissioning of the airport, Umahi revealed that he spent over N36 billion to build the international airport, located in Onueke, Ezza South Local Government Area.

Representative of NCAA, at the event, General Manager, Aerodrome Services, Mr Oladipo Adebayo, described the airport as the best in Nigeria.

ANAMBRA: N6 billion

In 2018, the Federal Government approved the construction of Anambra airport.

At the time, the administration of former Governor Willie Obiano said when completed, it would serve as a cargo airport.

There were criticisms over the project given the proximity of Asaba and Enugu airports.

However, the project, which was sited in Umileri, officially commenced in 2020 and was completed within 15 months.

At the opening ceremony, Obiano said the project was solely funded by the state, adding that nothing was borrowed to fund it.

In 2021, the state government said N6 billion was spent and not $2 billion as alleged in some quarters.

EKITI:

N16 billion
The decision of the administration of ex-Governor Kayode Fayemi to construct a cargo airport in Ekiti was met with stiff criticisms.

Among the issues of viability raised, it was said that since Akure airport, which is close to Ekiti, hardly records daily flights, the project was needless. On October 22, the facility, located close to Afe Babalola University, was commissioned by Fayemi. The construction was awarded to CCECC Nigeria Limited by Fayemi in 2019.

As of January 2023, Special Adviser to Governor Biodun Oyebanji on Budget, Economic Planning and Performance Management, Niyi Adebayo, revealed that N16.6 billion had been spent on the yet-to-be-completed facility.

He explained that the fund was used for perimeter fencing, completion of the runway and taxiway, terminal building and payment of compensation for the farmers whose farmlands were acquired for the project.

BAYELSA: N70 billio

Former Governor Seriake Dickson conceived and built the Bayelsa International Airport. The construction began in 2012 and completed in February 2019.

Amid allegation by former National Chairman of All Progressives Congress, APC, Senator Adams Oshiomhole, that the project gulped N100 million, Dickson said it was done at the rate of N70 billion.

OSUN: N69 billion

Osun State government under ex- Governor Olagunsoye Oyinlola proposed the construction of MKO Abiola International Airport at Ido-Osun, Ede North/ Egbedore Local Government Areas. Work started during the era of former Governor Rauf Aregbesola. The airport was planned to provide human and cargo transportation.

The project was first awarded to Aeronautics Engineering at the cost of N4.5 billion in October 2012. It was later reviewed to N11 billion to accommodate more features.

However, in 2017, the contract was awarded at N69 billion to a firm named All Works of Life, AWOL, International Limited.

Last year, former Governor Gboyega Oyetola handed the project over to Nigeria Airflow, NAF.

OGUN: N40 billion

In 2021, Ogun Stage governor, Dapo Abiodun, commenced the construction of Ogun State Gateway Agro-Cargo International Airport.

The maiden test flights to the Gateway International Agro-Cargo Airport, in Ikenne Local Government Area of the state, took place in February this year.

At inception, the projected cost of the project was reportedly put at N40 billion.

AKWA IBOM: N25 billion

In 2006, then Governor Victor Attah began the construction of what later became Victor Attah International Airport, Uyo. It was later completed by the Godswill Akpabio administration. The state was reported to have spent N25 billion building the airport. Akwa Ibom also spent $100 million to build and equip the Maintenance, Repair and Overhaul, MRO, facility.

ABIA: Proximity

Despite the closeness of Sam Mbakwe Airport, Owerri, to Umuahia, Abia State capital, the administration of Senator Theodore Orji conceived the Abia Airport project. The governor had said a group of Abia businessmen had appealed that an airport be constructed to boost economic activities in the state.

JIGAWA: N4 billion

Dutse International Airport was established by the administration of former Governor Sule Lamido.

It was built at the cost of N4 billion by the state government and commissioned in 2014 by former President Goodluck Jonathan.

The facility is located less than 100 kilometres from Aminu Kano International Airport, making experts describe it as wasteful and needless.

From the time it was constructed to date, worries exist over its usefulness.

KEBBI: N14 billion

The administration of former Governor Saidu Daikingari constructed the Ahmadu Bello Airport at the cost of N14 billion.

At the time, the state government said it would attract investors, provide employment and generate revenue.

NASARAWA: N10 billion

Nasarawa State government, under the leadership of ex-Governor Umaru Tanko Al-Makura, conceived the project as part of moves to open the state for investment opportunities.

The airport, whose project cost was estimated at N10 billion, was also intended to ease cargo traffic at the Nnamdi Azikiwe International Airport, Abuja.

OTHERS: Unsustainable scale
Airports in Gombe, Zamfara, Benue and Delta were also built by state governors.

Speaking to Vanguard, President of Aircraft Owners and Pilots Association of Nigeria, Dr. Alex Nwaba, said Nigeria needs more airports, but they are all being built at unsustainable scale.

Nwaba said, “Airports are necessary to access a city or state and maintain its competitiveness. You can draw a straight line of correlation between cities that have airports and development against their peers.

“No one wants to go to his neighbour for export nor do they want to travel miles in a medical emergency. Yes, airports are long-term development assets.

“Nigeria needs more airports. The problem is they are all being built at an unsustainable scale.”