Africa’s aviation growth requires financially sustainable airports, says FAAN MD

The Managing Director/Chief Executive of the Federal Airports Authority of Nigeria (FAAN), Mrs Olubunmi Onabanjo-Kuku, has called for increased investment in airport infrastructure, technology, human capital and commercial partnerships to enable African airports cope with the continent’s expanding aviation market.

Kuku, who is also Vice President of the Airports Council International (ACI) Africa, made the call while delivering her welcome address at the opening of the 2026 ACI Africa Regional Conference and Exhibition in Abuja.

The conference, hosted at the Abuja Continental Hotel, is themed, “Next-Gen Airports: Driving Performance and Resilience.”

She said the theme represented more than a conference slogan, describing it as a strategic mandate for African aviation stakeholders to prepare the continent’s airports for the demands of the coming decade.

Kuku said recent passenger traffic figures showed that Africa was experiencing strong aviation growth despite persistent structural challenges.

She cited International Air Transport Association (IATA) figures indicating that African airlines recorded a 6.4 per cent year-on-year increase in international passenger demand in July 2026, compared with a 0.1 per cent decline in global international demand.

She added that Africa’s overall passenger demand increased by 5.2 per cent, against global growth of 0.2 per cent.

“Let me put that in perspective: while global international demand actually declined by 0.1 per cent during the same period, Africa was expanding. We are not just participating in global aviation recovery – we are leading it,” she said.

According to her, Nigeria was playing a significant role in the expansion, with the country’s aviation market now ranked the fourth-largest in Africa.

She disclosed that more than 18.8 million domestic and international passengers passed through Nigerian airports in 2025, representing an 11.9 per cent year-on-year increase.

Kuku further said the Murtala Muhammed International Airport (MMIA), Lagos, recorded the fastest growth in scheduled seat capacity among Africa’s 10 largest airports in September, with a 24.1 per cent increase.

The growth, she said, had continued into 2026, with OAG data putting Nigeria’s total scheduled airline capacity for September at 1.19 million seats, representing a 37.4 per cent increase over the corresponding period of 2025.

She attributed the expansion to currency reforms, new aircraft leasing arrangements and renewed confidence among international airlines seeking to expand their Nigerian operations.

“Since the current Minister of Aviation and Aerospace Development took office, several airlines have resumed operations in Nigeria, and more are expected soon,” she said.

Kuku, however, warned that the growth figures should not obscure the structural weaknesses confronting African aviation.

She noted that Africa accounted for only one per cent of global air traffic despite being home to about 18 per cent of the world’s population. Airline load factors, she added, remained below global averages, while the financial viability of many African carriers continued to be fragile.

She said Nigeria, despite its population of more than 220 million people, recorded approximately 19.5 million passengers annually across 28 airports, indicating considerable room for expansion.

“The potential is vast, but the gap between where we are and where we could be remains substantial,” she said.

The FAAN chief executive identified funding constraints, infrastructure deficits, high operating costs, fragmented connectivity and pressure to maintain low charges while providing world-class facilities as some of the major obstacles to sustainable airport development.

She cited FAAN’s experience since 2023 as an example of how airport operators could pursue transformation despite financial and operational constraints.

According to her, the authority has prioritised infrastructure modernisation, safety and capacity through the rehabilitation of a major runway at MMIA, terminal upgrades and improvements to airfield lighting, while keeping airport operations running.

“We have focused on the fundamentals: safe runways, functional terminals, and reliable systems,” she said.

Kuku also highlighted the establishment of FAAN’s Passenger Experience Hub, which she said was designed to improve speed, predictability, comfort and human assistance for travellers.

“We recognise that airports are not merely infrastructure – they are experiences,” she said.

She disclosed that FAAN was deploying digital technologies, including faster check-in systems, automated e-passport gates, enhanced security systems and passenger-data analytics.

On quality management, Kuku said FAAN secured ISO 9001:2015 and ISO 14001:2015 certifications in January 2026, describing the certifications as evidence of its commitment to quality management, environmental responsibility and continuous improvement.

She added that more than 3,500 FAAN personnel had been trained and certified through International Civil Aviation Organisation (ICAO) and ACI programmes.

On cargo development, she said the authority had retooled its Directorate of Cargo Development Services and was working with stakeholders to position Nigerian airports as logistics platforms for regional and international trade.

Looking ahead, Kuku identified financial sustainability, intelligent infrastructure, operational resilience, human capital and partnerships as key pillars for the development of next-generation African airports.

She urged airports to reduce their dependence on aeronautical charges by developing alternative revenue streams through logistics parks, hospitality, retail, data-driven services and airport-city developments.

“Our airports must become commercial ecosystems – anchors for logistics parks, hospitality, retail, data-driven services, and airport-city development,” she said.

She also stressed the importance of predictive maintenance, reliable power supply, digital operational systems and data analytics in improving airport efficiency.

On resilience, Kuku said it should be regarded as an organisational capability rather than merely an emergency response mechanism.

“Resilience is not an emergency plan – it is an organisational capability,” she said, stressing the need for redundancy, agility, intelligence and effective communication systems to shorten the time between disruption and response.

She warned that investment in infrastructure and technology would produce limited results without a competent workforce.

“Infrastructure depreciates; technology becomes obsolete; but a competent, accountable, and continuously learning workforce multiplies every investment,” she said.

Kuku also called for stronger collaboration among governments, airport operators, private investors, airlines, technology companies, logistics providers and development finance institutions.

She urged African governments to establish predictable and commercially disciplined frameworks for long-term airport infrastructure investment, while giving airport executives clear mandates, predictable resources and sufficient operational freedom to manage airports commercially.

She further urged development partners and financial institutions to regard airports as strategic economic infrastructure deserving sustained investment.

Kuku said initiatives such as the African Continental Free Trade Area (AfCFTA), Single African Air Transport Market (SAATM) and the continent’s young, digitally oriented population offered significant opportunities for a more integrated and competitive aviation market.

“Not every desirable project can be funded at once. But the essential projects – the ones that protect safety, build capacity, generate revenue, and strengthen resilience – must not wait,” she said.

She said Africa had demonstrated resilience by keeping its aviation sector operational through currency crises, health emergencies, supply-chain disruptions and geopolitical uncertainties.

“The challenges are real, but so is our resilience. We have operated through currency crises, health emergencies, supply chain disruptions, and geopolitical uncertainty. We have kept people and economies connected,” she said.

Kuku urged participants to use the Abuja conference to exchange experiences, strengthen partnerships and develop a shared vision for the future of African airports.

“Let us leave Abuja with renewed commitment, strengthened partnerships, and a shared vision of what African aviation can become,” she said.