Airlines, passengers, and airport businesses are raising concerns over the growing number of charges imposed by the Federal Airports Authority of Nigeria (FAAN) across the country's airports, describing them as excessive and unsustainable.
Expert highlights financial strain
Gbenga Onitilo, Principal Managing Partner of Aeronexus Partners Ltd, stated in an interview with The Guardian that FAAN's revenue framework covers nearly every aspect of the aviation ecosystem, creating a 'full-spectrum charging model' that affects all airport users. He pointed to rising parking fees, access tolls, and passenger service charges (PSC), which currently stand at $100 for international passengers and $50 for regional travelers, as examples of fees that are high relative to service delivery levels.
Onitilo also noted that concessionaires leasing retail and service spaces face additional burdens, including lease payments and a 10 percent levy on gross earnings. 'Every layer of the airport experience—parking, entry, concessions, leases, fuel throughput—has a price tag attached,' he said. 'The architecture is simple: touch anything, pay something. But is that sustainable for an industry that should be driving connectivity, trade, and economic expansion?'
Impact on airlines and passengers
He further explained that FAAN earns revenue on every litre of Jet A1 fuel dispensed, which, combined with other taxes and surcharges, squeezes airline margins. These cumulative costs increase the expense of operating domestic and international flights, and airlines often pass these costs to passengers through higher airfares. Onitilo criticized FAAN's approach for prioritizing revenue generation over facilitating growth and efficiency, and called for a comprehensive review of the charging structure to align fees with measurable service standards.
