The Federal Government has awarded a 30-year concession of the Jeremiah Obafemi Awolowo International Airport in Port Harcourt, Rivers State, to Port Harcourt Airport Company Ltd., in a move aimed at reducing the financial burden of running loss-making airports and attracting private sector investment into the aviation industry.
The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this on Thursday at the signing of the concession agreement in Abuja.
Keyamo said the concession, which was approved by President Bola Tinubu and the Federal Executive Council (FEC), was aimed at improving airport efficiency and easing the financial burden of maintaining unprofitable facilities.
He explained that the government currently relies on revenues from profitable major airports to subsidise the operations of loss-making ones, putting additional pressure on the aviation sector’s finances.
“The reasoning behind it is that some of our airports are being run at a loss, and we should say it the way it is. We generate substantial revenue from some of our primary airports and major gateways, and most of those profits are ploughed into sustaining the loss-making ones,” he said.
The minister said the Federal Government was seeking private sector investment to modernise airport infrastructure and improve operational efficiency.
He said the government also lacked the financial resources to fully develop the commercial and non-aeronautical facilities at some airports, limiting their ability to generate additional income beyond passenger and aircraft operations.
According to Keyamo, private sector involvement would help maximise the commercial value of airport assets, diversify revenue streams and enhance operational efficiency.
“So much can be achieved in developing the non-aeronautical parts of these airports. Private investors have the capacity and potential to expand their use and operations,” he said.
He noted that the concession of the Port Harcourt airport was not a new policy initiative, explaining that previous administrations had made similar attempts but faced opposition from aviation unions, resulting in prolonged legal disputes.
Keyamo said the Tinubu administration had engaged aviation unions to address workers’ concerns and ensure their welfare was safeguarded throughout the concession process.
He also revealed that the ministry had received concession proposals for other airports, including Benin Airport and Yola International Airport, as the government seeks to expand private sector participation in the aviation industry.
Speaking on behalf of the concessionaire, the Group Executive of R28 Holdings, Eyo Asuquo, assured existing airport workers that the arrangement would generate more employment opportunities rather than lead to job losses.
He also pledged substantial investment in airport infrastructure, assuring that the Port Harcourt facility would be upgraded to meet international standards comparable to those of airports in Europe and the United States.
