AIRPORT PRIVATISATION NOW ECONOMIC NECESSITY FOR NIGERIA, EX-FAAN BOSS SAYS
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By Aishat Momoh. O.
A former Managing Director of the Federal Airports Authority of Nigeria (FAAN), Dr Richard Aisuebeogun, has said the privatisation and commercialisation of Nigeria’s airports is no longer optional but an economic necessity.
Aisuebeogun stated this while delivering a paper titled “Airport Concession: The Inevitable” at the 2026 Airport Business Summit and Expo held at the Murtala Muhammed Airport, Lagos.
The summit, themed “Unlocking Airport Revenue Potential: Strategies and Partnerships,” focused on attracting investment and improving airport infrastructure through private sector participation.
The former FAAN boss argued that Nigeria could no longer depend solely on public funding to modernise its airports, stressing that private sector investment was critical to developing world-class aviation infrastructure and unlocking the industry’s revenue potential.
He said airport commercialisation would improve competition in airport management, attract investment, enhance operational efficiency and raise service delivery to international standards.
According to him, airports have become valuable economic assets globally because of their ability to stimulate economic growth, facilitate trade, create jobs and drive regional development.
Aisuebeogun noted that successful concession models adopted across Europe and the Middle East have shown that commercially managed airports are generally more efficient, financially sustainable and customer-focused than those operated exclusively by governments.
He added that private concessionaires assume both the financial and operational risks associated with airport management, giving them greater incentives to expand terminals, improve passenger experience and invest in long-term infrastructure.
“The volume that determines airport profitability is passenger traffic. Airlines alone cannot sustain an airport. Passenger numbers remain the key driver of airport revenues,” he said.
The aviation expert observed that governments worldwide were facing increasing fiscal constraints, making it difficult to fund large-scale airport expansion projects without private capital.
While acknowledging concerns often raised about airport privatisation, including labour issues and fears of profit-driven management, Aisuebeogun maintained that Nigeria already has the necessary regulatory framework to safeguard public interest.
He stressed that effective regulatory oversight would ensure concessionaires fulfilled their investment obligations while maintaining acceptable service standards.
Despite advocating commercialisation, Aisuebeogun said the Federal Government should retain ownership of airports because of their strategic importance to national security and economic stability.
He instead recommended well-structured Public-Private Partnerships (PPPs), describing them as the most viable model for balancing government oversight with private sector investment, innovation and operational expertise.
According to him, carefully designed PPP arrangements would enable Nigeria to modernise its airport infrastructure while preserving government control over critical national assets.
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