The Federal Airports Authority of Nigeria (FAAN) has revealed that an estimated N580 billion is needed for the renovation of airport runways across the country. This was disclosed by FAAN’s Managing Director, Olubunmi Kuku, during a recent tour of Lagos airport facilities by the Permanent Secretary of the Ministry of Aviation, Dr. Ibrahim Kana. Kuku explained that the runways, which were originally built in the late 1970s, have surpassed their expected lifespan of 20 to 25 years. She emphasized that many of FAAN’s facilities, including terminals and runways, are aging and in urgent need of repairs. This situation is affecting the operational efficiency and safety of the airports, demanding substantial investments for modernization. Furthermore, despite efforts to enhance airport security, FAAN continues to face challenges managing security risks, particularly with the rising number of air travelers and the potential for threats at key airport locations. Issues such as land encroachment, due to the absence of a proper perimeter fence, are also ongoing concerns across the country. Many airports are also burdened with outdated equipment, such as old fire tenders, air conditioning systems, and conveyor belts with worn-out components. These inefficiencies contribute to high maintenance costs, which need addressing to improve overall airport performance. Looking ahead, Kuku shared that FAAN plans to modernize airport infrastructure through the renovation of terminals, runway expansions, and the upgrading of navigational aids. Additionally, the construction of a new and modern FAAN headquarters is set to begin in 2025, aiming to centralize operations and improve efficiency. As part of the modernization efforts, FAAN will prioritize major international airports and regional airports to accommodate the growing demands for passenger and cargo services. Kuku stressed the importance of deliberate and focused efforts to address issues at the airports, particularly with runway rehabilitation. In terms of revenue growth, FAAN aims to increase its earnings for 2025 by adopting innovative strategies to boost non-aeronautical revenue. This includes exploring commercial concessions, advertising, real estate development, and expanding cargo operations. Kuku also noted that FAAN remitted N128.7 billion into the Federation account in 2024, with a significant increase in net inflows due to efforts to minimize revenue leakages. FAAN’s strategic focus for 2025 includes forming Public-Private Partnerships (PPP) to expand investment opportunities and develop underutilized assets. Kuku highlighted that FAAN will also invest in advanced security systems, such as biometric screening and enhanced surveillance technologies, to comply with global standards. To further strengthen security, FAAN will intensify staff training on aviation safety and security procedures. In addition, the authority plans to upgrade its e-procurement systems to minimize technical downtimes and align FAAN’s goals with both national aviation policies and international standards. Moreover, FAAN aims to integrate environmentally sustainable practices into its operations, focusing on energy efficiency, waste management, and reducing carbon emissions. Collaboration with industry stakeholders will also be a priority to adopt green airport initiatives. Lastly, FAAN will focus on increasing its workforce to support the expanding operations while ensuring employee welfare through better working conditions and enhanced benefits. READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.
Discover the TUC President’s insights on Nigeria’s 2025 budget, economic challenges, and the urgent need for a $280 billion budget to drive sustainable development. Comrade Festus Osifo, the President of the Trade Union Congress of Nigeria (TUC) and National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), shares insights on Nigeria’s economic challenges and offers potential solutions in this comprehensive interview with Christian Appolos. Key Achievements of the Labour Movement in 2024 Reflecting on 2024, Comrade Osifo highlights several milestones achieved by the labour movement, with the increase in the national minimum wage standing out. The wage was raised from ₦30,000 to ₦70,000—a 133% increment. While this falls short of labour’s expectations, it was a commendable achievement given the prevailing economic difficulties, including inflation, naira devaluation, and the removal of fuel subsidies, which have eroded the purchasing power of workers. Additionally, the Trade Union Congress (TUC) and its affiliates negotiated numerous collective agreements behind closed doors. In the oil and gas sector, for example, some branches secured remuneration increases of up to 200% without resorting to industrial actions. These successes, though largely unpublicized, underscore the labour movement’s effectiveness in 2024. Ensuring Compliance with the ₦70,000 Minimum Wage Labour has made significant strides in ensuring compliance with the new minimum wage. Within six months of its implementation, several states have already signed agreements and begun payment. For states lagging, high-level discussions are ongoing, and in 2025, TUC aims to hold all states accountable. Where necessary, directives will be issued to members to enforce compliance. Functional Refineries: Will Fuel Prices Drop? The TUC has long advocated for the revitalization of Nigeria’s refineries, such as those in Port Harcourt and Warri. However, Osifo explains that fuel prices are largely determined by the exchange rate. For instance, even as Dangote Refinery commenced production, fuel prices remain tied to the fluctuating cost of crude oil and the exchange rate. If the naira strengthens, fuel prices could drop significantly. For example, a ₦1000/USD exchange rate could reduce fuel prices to approximately ₦400-₦600 per litre. The National Budget and Borrowing Concerns The 2025 budget is set at ₦49.76 trillion, approximately $82 billion based on a projected exchange rate of ₦1500/USD. While this represents a nominal increase from 2024’s budget of ₦27.5 trillion ($38 billion at ₦700/USD), the devaluation of the naira means the real value has diminished. Comrade Osifo points out that Nigeria’s budget is disproportionately low for a country of over 200 million people. South Africa, with a smaller population, has a budget of approximately $128 billion. He argues that Nigeria’s budget should be at least $250 billion to address critical sectors like education, healthcare, and defense. The heavy reliance on borrowing to finance the budget is another concern. With ₦13 trillion earmarked for borrowing and ₦15 trillion allocated to debt servicing, the nation’s finances are increasingly strained. Osifo emphasizes the need to boost revenue generation to reduce the growing deficit and avoid a cycle of unsustainable debt. Expanding Revenue Sources Osifo stresses that Nigeria’s vast natural resources remain underutilized. From bitumen deposits in Ondo to gold in Zamfara, the country has untapped wealth that could significantly boost revenue. He calls for partnerships between the government and private sector to harness these resources. Furthermore, the gas sector presents enormous potential. Nigeria has some of the world’s largest gas reserves, yet projects like the Brass LNG remain stalled. Expanding the gas industry could replicate the success of the NLNG in Bonny and generate substantial revenue. Regarding taxation, Osifo advocates for broadening the tax net rather than increasing rates. With only 5% of Nigerians paying taxes and VAT collection efficiency below 10%, improving tax administration could yield significant returns. Turning Nigeria’s Economy Around in 2025 Osifo identifies the exchange rate as a critical factor in alleviating Nigeria’s economic woes. He suggests that the government implement policies to strengthen the naira, aiming for an exchange rate of ₦1000-₦1200/USD. This would directly lower the cost of goods and services, easing the burden on citizens. Additionally, the government must prioritize food security through massive investments in agriculture. Collaborative efforts between federal, state, and local governments are essential to encourage farming and ensure nationwide food production. Ensuring security across the country is also critical to achieving these goals. Conclusion Comrade Osifo’s insights underscore the urgent need for Nigeria to adopt bold and innovative measures to address its economic challenges. By increasing revenue, strengthening the naira, and making strategic investments in critical sectors, the nation can chart a path toward sustainable development and improved living standards for its citizens. READ ALSO: Follow the LMSINT MEDIA channel on WhatsApp: Join Our WhatsApp Group Hear: Chat on WhatsApp Join our Telegram Chanel.
