Federal Government Hands Over Enugu Airport Under PPP Deal

• The federal government has handed over Akanu Ibiam International Airport, Enugu, to Aero Alliance Limited in a PPP deal
• Aviation Minister Festus Keyamo says the concession marks a shift in investor confidence, with Enugu becoming a key aviation and investment hub
• Aero Alliance pledges to transform the airport into a leading regional aviation and logistics centre

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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The federal government has formally handed over Akanu Ibiam International Airport, Enugu, to Aero Alliance Limited in a Public-Private Partnership (PPP) arrangement, which will finance, rehabilitate, expand and operate it to international standards.

Under the concession agreement between the Federal Government of Nigeria and Aero Alliance Limited for the rehabilitation and management of Akanu Ibiam International Airport, Enugu, for the next 20 years, Aero Alliance Limited will be responsible for financing, construction/rehabilitation of existing structures, expansion and operationalising the facility towards an international benchmark.

Enugu state airport

At a ceremony for the handshake in Enugu, a symbolic handover of management and operations of the airport held at the international terminal, the Minister of Aviation and Aerospace Development, Festus Keyamo, said that the concession was a landmark for government efforts to bring private investment into the nation’s aviation infrastructure.

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Keyamo, who noted that previous administrations had tried to concession the country's airports, but could not get interested investors in Enugu and Port Harcourt airports, as most of them were only interested in Lagos, Abuja, and Kano, owing to the commercial viability.

The minister said:

"For 20 years, every government was interested in conceding airports. Most concessions that we had, we have done so for many years. There was a lot of competition for concession of airports in Lagos, Abuja, Kano, but none for Enugu and Port Harcourt."

He stressed that the administration of President Bola Tinubu had turned things around, as they had investors clamouring to come to the South-East region.

He said:

"Look at what we have now - we have no bidder presently for Lagos, Abuja, and Kano. But Enugu and Port Harcourt are gone."

The minister also assured airport workers of their continued job security and said private sector management would bring about more efficiency and better services.

He stated:

"Aviation workers are our children; they will not suffer during our time. The process that led to this moment would see many changes, a more professional management and a more efficient service delivery because private companies will always aim to do more and deliver better for consumers. We engaged aviation labour unions at all levels to come up with an agreement that the process did not favour any of the parties."

He noted the state Governor of Enugu, Peter Mbah’s proactiveness, saying it played a crucial role in achieving the successful concession and attracting private capital to develop the airport into an aviation and investment hub.

Enugu Air gets commendation

According to Keyamo, Mbah had presented a development plan for the airport about two weeks into his tenure, which helped attract the interest of private investors.

The minister said:

"In fact, the success of Enugu Air we all celebrated last week also speaks volumes about the economic potential and investment prospects we are unlocking in Enugu."

The Director-General, Infrastructure Concession Regulatory Commission (ICRC), Dr Jobson Ewalefor, described the deal as historical and a reflection of the governor’s tenacity and credibility to attract and manage private investment to boost the region.

He said the increased confidence of the international community, the launch of Enugu Air, and expanding partnerships underscored the growing influence of the state in the aviation and logistics industry globally.

FAAN to begin terminal renovations at Lagos airport

Earlier, Legit.ng reported that the Federal Airports Authority of Nigeria (FAAN) Managing Director, Mrs. Olubunmi Kuku, announced this during a stakeholder engagement session.

Kuku noted that the renovation was long overdue, as it was one of the terminals mentioned for repairs months ago.

The renovation had been delayed due to pending approvals and logistical issues.