The Federal Government has concessioned the Awolowo International Airport, Port Harcourt, to Port Harcourt Airport Company Ltd. for 30 years.
The Minister of Aviation and Aerospace Development, Mr Festus Keyamo, stated this during the signing of the concession agreement in Abuja on Thursday, noting that the move was aimed at halting 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.
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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 many years,” he added.
Keyamo noted that previous administrations were unable to finalise the process due to stiff resistance that resulted in 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 throughout the concession process,” Keyamo said.
The minister also disclosed that his ministry had received concession proposals for the Benin Airport and the Yola International Airport, among others.
Speaking on behalf of the concessionaire, the Group Executive of R28 Holdings, Mr Eyo Asuquo, assured that the concession would generate more employment opportunities rather than lead to job losses among existing airport staff.
Asuquo further pledged that the infrastructure at the Port Harcourt airport would be significantly upgraded to meet international standards comparable to those in Europe and the United States.
