Port Harcourt:Abuja The Federal Government has concessioned the Jeremiah Obafemi Awolowo International Airport in Port Harcourt, Rivers, to Port Harcourt Airport Company Ltd. for a period of 30 years.
According to News Agency of Nigeria, the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, announced this development during the signing of the concession agreement in Abuja. He emphasized that the initiative aims to address the operation of unprofitable airports, aligning with the Federal Government’s policy of involving private sector participation in the development and management of select airports across the country.
The concession of the Port Harcourt International Airport, also known as the Jeremiah Obafemi Awolowo International Airport, received approval from President Bola Tinubu and the Federal Executive Council. Mr. Keyamo highlighted that some airports are running at a loss, with revenue from primary airports being used to sustain these loss-making facilities. Operating costs, including personnel emoluments and running diesel generators, contribute significantly to these losses.
He further explained that the government is constrained by funds to expand the use of these airports, particularly their non-aeronautical components. The involvement of private investors is expected to expand the use and operations of these airports, as it has been considered for many years.
Mr. Keyamo noted that previous attempts to finalize such concessions faced resistance and legal challenges with aviation unions. However, under President Tinubu’s guidance, efforts were made to engage the unions and protect workers’ interests throughout the concession process.
The minister also revealed that his ministry had received concession proposals for other airports, including Benin Airport and Yola International Airport. Speaking for the concessionaire, the Group Executive of R28 Holdings, Mr. Eyo Asuquo, assured that the concession would create more employment opportunities and significantly upgrade the Port Harcourt airport infrastructure to meet international standards.