State governments planning new airport projects have been urged to ensure that investments are supported by sustainable commercial demand, as the Federal Airports Authority of Nigeria (FAAN) cautioned that most federally managed airports are yet to achieve financial sustainability.
Speaking during an interactive aviation webinar, Olubunmi Kuku, the managing director of FAAN said 19 of the 22 airports managed by the authority are commercially unviable and depend on financial support for their operations. She said airport development should be guided by economic activity rather than projects undertaken without sufficient demand.
Kuku noted that although FAAN handled about 17 million passengers, air travellers still account for less than 10 per cent of Nigeria’s population, an indication that passenger demand remains limited in many parts of the country. She said this makes it necessary for governments to carefully evaluate the economic case for new airport investments before committing public funds.
She explained that airports require substantial and continuous investment in infrastructure, security, maintenance, safety systems and personnel, making it difficult for facilities with low passenger traffic and limited commercial activities to generate enough revenue to sustain operations.
According to her, airport development should be integrated into broader economic planning by creating business activities capable of supporting long-term operations. She identified cargo services, agricultural exports, logistics, warehousing and other commercial enterprises as areas that can improve airport utilisation and strengthen revenue generation.
Kuku also advocated the aerotropolis model, where airports serve as centres for logistics, manufacturing, retail, hospitality and other business activities rather than functioning solely as transport facilities. She said building economic ecosystems around airports would improve their commercial performance and reduce dependence on public funding.
Her remarks come at a time when several state governments are pursuing airport projects as part of wider infrastructure programmes, even as operators across the aviation industry continue to explore ways of improving financial sustainability through cargo development, commercial partnerships and non-aeronautical revenue.
The FAAN chief said future airport investments should focus on supporting trade, investment and regional economic development, stressing that commercially sustainable infrastructure would strengthen Nigeria’s aviation sector while reducing pressure on public resources.
