Oversight: House Com’tee vows to assist FAAN recover debts

…recommends creation of a consolidated account for 25% remittances from FAAN

The House of Representatives Committee on Aviation has said it will assist the Federal Airports Authority of Nigeria to recover all its debts owed by airlines and other airport users.

The Committee, which carried out an oversight tour on FAAN facilities at the Murtala Muhammed Airport, Lagos, on Thursday, said the Authority required adequate funding to improve on airport infrastructure, vowing that it would exercise its parliamentary functions where possible to assist in this regard.

The debt profile of airlines, both indigenous and foreign, to FAAN and other regulatory agencies were said to be in the tune of N513 billion in April last year, as disclosed by the Minister of States for Aviation, Hadi Sirika.

A large chunk of this figure is said to be owed by Arik Air and Aero Contractors which are currently under receivership with the Asset Management Corporation of Nigeria (AMCON).

Considering a developmental agenda for airport infrastructure as captured in the Amendment Bill of FAAN Act by the President, Muhammadu Buhari, the Committee said the recovery of the debts would definitely add-up to the funding of projects by the Authority.

Chairman of the Committee, Honourable Nnolim Nnaji, said “As members of parliament and stakeholders, we will not allow FAAN to carry the burden alone; we are definitely going to pursue it.

“We are lucky that we have members in this committee who are also members of the finance committee and others that have a direct bearing on debt recovery. These members will come together to support FAAN in this aspect,” he added.

Also in pursuit of this developmental agenda, Nnolim said the Committee would recommend that the Federal Government create a consolidated account where FAAN would be remitting 25 per cent of its revenue over a timeframe of 10 years to enable it to actualize its projects.

According to him, having a 10-year program would compel every Managing Director of the agency to focus on the developmental agenda within the timeframe to avoid unnecessary duplication or cancellation of projects.

“FAAN needs funding like every other agency in the aviation sector. Part of our plea to the federal government is to help FAAN in the area of aviation infrastructure.

“The federal government can find a way to create a consolidated account where this 25 per cent (of FAAN revenue) will be remitted to and create a 10-year developmental plan where FAAN can come up with a programme on how to improve their infrastructure,” he said.

He also noted that budgetary allocations will not be enough to execute critical projects that will have a longer lifespan, and that is why there is a need for a timeline and a consolidated account.

“It is not just about the budgetary allocation alone, this ten-year plan can enable them to carry out a project that can live beyond managing directors and executive directors.

“The problem we are having is that a managing director and executive directors will come and create their programme.

“But if we have a plan that involves the federal government through the ministry of finance, budget ministry and the other agencies will form part of the consolidated account so that whatever project that is coming will live beyond the management of FAAN,” he said.