Reps committee summons FAAN boss over alleged abuse of concessions
The House of Representatives Committee on Public Assets has summoned the Federal Airports Authority of Nigeria (FAAN) and its private partners over allegations of abuse concessions and public-private partnership (PPP) agreements, allegedly depriving the federal government of its rightful revenue.
At an investigative hearing, Committee Chairman Ademorin Kuye (APC, Lagos) revealed that some companies continue to operate despite the expiration of their lease and concession agreements with FAAN, doing so without legal authorisation or evidence of payment into the concession account.
As part of its inquiry, the committee has summoned FAAN’s Managing Director, Mrs Bunmi Kuku, to respond to allegations of irregularities in the agency’s PPP arrangements. Kuye stated that the probe was in line with the committee’s mandate and public concerns over the mismanagement of PPP agreements in the aviation sector.
The committee directed FAAN’s MD to submit all relevant lease and concession documents by Thursday, 6 March 2025, and mandated her and her management team to appear before the panel.
Lawmakers criticised the continued operations of expired concessions as a deliberate attempt to shortchange the federal government and vowed to take corrective action.
According to the committee, several companies whose concessions have expired are still operating, including: NAHCO – Concession to operate as a handling company in all Nigerian airports expired in December 2017; Infra Oil Ltd – Lease for a petrol station in Enugu expired in November 2023; Jasmine Gardens – Lease for a recreational garden in Benin expired in April 2024; Sahara Energy Resources Ltd – Lease for the construction and operation of aviation fuel depots in Calabar, Owerri, and Port Harcourt expired in June 2024 (Calabar and Owerri), while the Port Harcourt lease expired in March 2023.
Kuye stated that despite the expiration of these and other concessions, the companies continue operating without lease reviews or making necessary payments into the concession account.
He further alleged that despite the substantial revenue generated by concessionaires and lessees from toll gates and other services at Nigerian airports, there is no clear evidence of remittance of concession fees, surcharges, and other payments owed to the federal government.
The committee also accused concessionaires of charging exorbitant fees at airports while failing to remit payments to the government. One such charge, Kuye noted, is the N25,000 fee imposed by a private company for a car drop from Nnamdi Azikiwe International Airport, Abuja, to any nearby location.
Lawmakers alleged that FAAN had banned all taxi drivers and commercial vehicles from operating at the airport, allowing only this private company to provide car hire services unchallenged, without making any corresponding payments to the government.
The committee vowed to investigate the matter thoroughly and ensure that all due revenues are accounted for.
