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FAAN Has No Operating Surplus – Yadudu

by timenews
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… remits N2b into CRF

 

 

The Federal Airports Authority of Nigeria (FAAN) has announced that it currently does not have any operating surplus, also disclosing that it remitted N2 billion into the Consolidated Revenue Fund (CRF) account between January and September, 2020.

 

The Managing Director of FAAN, Captain Rabiu Yadudu, made this disclosure during the recent oversight visit of House of Representatives Committee on Aviation to the Industry.

 

He appealed to the Committee to expedite action on legislations that will help the Agency fastrack its operations across the Country’s airports.

 

“FAAN does not have operating surplus.  However, between January and September 2020, the Authority has remitted about N2 billion to the Consolidated Revenue Fund (CRF) account.

 

“The Authority is also mindful of the National Assembly committees on Aviation in ensuring that FAAN is exempted from payment of operating surplus to the federal government.  Exception of FAAN will guarantee that the revenue generated by the airports is transparently reinvested wholly in operating and developing airport facilities in compliance with International Civil Aviation Organisation (ICAO) standards and recommended practices on airport generated revenue,” he explained.

 

Yadudu explained that as at September 30, 2020, FAAN generated a total of N30, 084, 235, 670, during the nine months target set, out of which N27, 967, 455, and 341 was actual collection.

 

“From this amount, N17, 610, 732, 427 was from Aeronautical source of revenue, N5, 776, 622, 874 from non-aeronautical sources and N5, 242,434,128 recovered from outstanding debts owed.

 

”From January to September 2020, the revenue target of Aeronautical source was N38, 988, 439, 354 and actual generation totalled N17, 823, 332,992 out of which N17, 610, 732, 478 is actual collection giving a percentage performance of 98.81 on revenue collected over generated.

 

“The Authority is shifting focus from Aeronautical sources of revenue to non-aeronautical, FAAN is presently operating at only about 30 per cent of its pre-COVID capacity. The Authority has set up a revenue task force to aggressively drive revenue, follow up on outstanding debts owed and explore all possible investment opportunities,” he explained.

 

He called on the lawmakers to give accelerated attention to the FAAN’s budget saying that the 2021 IGR budget was submitted to the Committee for consideration, “we believe that early consideration and passage will enable achieve better in 2021.”

 

Yadudu further explained that “‘Nigeria is  expected to be a hub in West/Central Africa sub-region, adding that this can only be met through more funding for provision of modern infrastructure and technology, this we believe can only be achieved with your support.

 

“The Aviation agencies will urgently need intervention funds from the federal government to address infrastructural gaps and position the Industry for better service delivery and contribution to the national economy, on this note, we seek your assistance in this area and the other aforementioned areas.”

 

The Managing Director noted that it staff salaries are paid in full to staff, dispelling rumors that it has hitherto been paying half salaries to its workers.

 

While acknowledging challenges in the prompt payments, he affirmed that “nobody receives half salary in FAAN, we always say half salary is no salary.”

 

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