Reps probe FAAN over revenue gaps, demand detailed debt profile

2026-03-03 - 17:07

By Gift ChapiOdekina, Abuja ABUJA — The House of Representatives Committee on Finance on Tuesday questioned the management of the Federal Airports Authority of Nigeria (FAAN) over discrepancies in revenue collection, debt recovery, and passenger traffic data, demanding a comprehensive breakdown of outstanding payments from airlines. The session, chaired by Committee Chairman James Faleke, focused on FAAN’s internally generated revenue (IGR), passenger service charges (PSC), debt recovery, and reconciliation of payments from international airlines via the International Air Transport Association (IATA) platform. FAAN Managing Director, Olubunmi Kuku, explained that international operations are regulated by the International Civil Aviation Organization (ICAO), with airlines remitting payments through IATA’s Billing and Settlement Plan, noting a 14–30 day time lag in processing some payments. Debt Recovery Concerns FAAN reported recovering over N8 billion in 2023, but lawmakers highlighted a N25 billion shortfall for the same period. The MD said some debts were from defunct airlines and spillovers from international carriers, emphasizing that government revenue cannot simply be written off. Committee members expressed concern over the growing gap between projected revenue and actual recovery, questioning why debts persist in an industry where passengers pay upfront. Passenger Traffic and Charges FAAN reported a total of 17.5 million passengers in 2025, with 4.1 million international and 13.4 million domestic travelers. Passenger traffic figures include both departures and arrivals. PSC rates are N2,000 per departing domestic passenger, $100 for transatlantic international departures, and $80 for regional international flights. Lawmakers pressed for clarity on revenue estimates based on 2.2 million departing international passengers in 2025, seeking assurance that FAAN remits all due payments. Revenue Discrepancies Explained The MD attributed variations between projected and actual revenue in 2023 partly to exchange rate assumptions in the budget, clarifying that reported figures reflect actual cash received, not merely generated revenue. Demand for Detailed Debt Report Despite explanations, the committee demanded a detailed breakdown of FAAN’s debts for 2023–2025, including debtor airline names and recovery status. Additional requests included revenue from cargo flights, major international airports, tollgate collections, and clarification on specific revenue items. The MD acknowledged that FAAN functions as an airport management company on behalf of the federal government, suggesting a possible review of its enabling Act to reflect its operational role. The committee resolved to continue oversight of FAAN’s revenue framework and directed management to submit the requested documentation.