Federal Government Concessions Port Harcourt Airport for 30 years
The Federal Government has granted a 30-year concession of the Jeremiah Obafemi Awolowo International Airport to Port Harcourt Airport Company Ltd.
The Minister of Aviation and Aerospace Development, Mr Festus Keyamo, said this during the concession signing in Abuja, noting that the move aimed to halt the operation of unprofitable airports.
According to him, the concession aligns with the Federal Government’s policy of attracting private sector participation to develop and manage select airports across the country.
“The concession of the Port Harcourt International Airport, otherwise known as the Jeremiah Obafemi Awolowo International Airport, received the blessing of President Bola Tinubu and, of course, the Federal Executive Council.
“The reasoning behind it is that some of our airports are being run at a loss, and we should say it the way it is. We generate substantial revenue from some of our primary airports and major gateways, and most of those profits are ploughed into sustaining the loss-making ones,” he said.
The minister explained that operating an airport from morning till evening incurs heavy costs, particularly in personnel emoluments and running diesel generators, among other expenses.
“The government is also severely constrained by funds to expand the use of these airports, especially their non-aeronautical components.
“So much can be achieved in developing the non-aeronautical parts of these airports. Private investors have the capacity and potential to expand their use and operations.
“This is the reasoning behind what we are doing here today. It is not a knee-jerk decision; it has been on the cards for months.
Keyamo noted that the obvious administrative delay was finalising the process due to stiff resistance, which led to protracted court cases with aviation unions.
“However, under the guidance of President Tinubu, he directed us—and me in particular—on how to engage the unions, because he believes in the welfare of workers and insisted that their interests must be fully protected through the concession process,” Keyamo said.
The minister also said his ministry had received concession proposals for Benin Airport and Yola International Airport, among others.
Speaking on behalf of the concessionaire, R28 Holdings Group Executive Mr Eyo Asuquo assured that the concession would create more jobs rather than cause significant losses among existing staff.
Asuquo said the Port Harcourt airport would be significantly upgraded to meet international standards comparable to those in Europe and the United States.
