FAAN MD Says Nigeria's 17 Million Annual Passengers Underscore Deep Infrastructure, Funding Gaps
The Managing Director of the Federal Airports Authority of Nigeria, Mrs. Olubunmi Kuku, has stated that Nigeria's annual passenger traffic of approximately 17 million across 28 airports falls far short of the country's potential, citing chronic funding shortages and aging infrastructure as primary constraints.
Kuku made the remarks while speaking as a panelist at the Ethiopian Aviation Forum in Addis Ababa this week. She noted that Nigeria's population exceeds 220 million, yet passenger volumes remain disproportionately low, with roughly 4.2 million international travellers and the remainder domestic.
"Nigeria is a country of over 220 million people and when you look at our passenger traffic, we are barely scratching the surface," Kuku said. "We have about 17 million passengers across about 28 airports. For any of you who run airports, you can imagine the amount of investment and infrastructure required."
Kuku identified infrastructure deficit and the financing of that deficit as her most pressing challenges. She explained that FAAN manages 22 federally owned airports and six additional facilities on behalf of state governments, all operating in a highly regulated environment that mandates compliance with certification and safety standards regardless of traffic volume.
"I would say my biggest challenge is really around the infrastructure deficit and financing that deficit," she stated. "In the last couple of years, we have explored beyond public finance which is what the country had been doing for a while, which was to rely on the government."
Kuku noted that FAAN has achieved self-sustaining status in recent years through increased revenue generation, particularly from diversified non-aeronautical income streams. However, she emphasised that closing the infrastructure gap requires deeper private sector engagement.
"In the last six to eight months, we have closed a number of opportunities that are private sector-driven to finance some of the infrastructure," she said. "Public support is important, especially where you have had a large infrastructure deficit and are looking to catch up. But to close that gap, we really need to look to the private sector."
She cited a recent example: the Minister of Aviation approved the deployment of biometric technology at domestic terminals, financed entirely by private capital. Kuku, who also serves on the Airports Council International board, noted that airport charges remain a contentious topic across the continent as operators seek sustainable repayment models for infrastructure investment.
Addressing physical infrastructure, Kuku disclosed that several Nigerian runways have exceeded their 15-to-20-year pavement lifespan, with some international airport runways operating for up to 30 years.
"In the last three years, we have been extremely focused on safety," she said. "In Lagos, we have an ongoing rehabilitation of the runway. We completed the international runway last year, and the domestic runway is now being fully rehabilitated. We are doing the same with the Kano airport and the Port Harcourt runway."
She added that airfield lighting upgrades are a priority to extend operating hours at domestic airports. While Nigeria's five international airports in Lagos, Abuja, Port Harcourt, Kano, and Enugu operate round the clock, many domestic airports function on a sunrise-to-sunset schedule. Kuku said at least five secondary airports have extended operations to approximately 10 p.m. pending further lighting upgrades from Category 1 to Category 2 standards.
Responding to a question on accessing international capital markets despite Nigeria's sovereign credit rating constraints, Kuku drew on her finance background to advocate for modular and diversified funding approaches.
"It is difficult to raise capital at any level above that country's risk ceiling," she acknowledged. "But one of the key considerations is really the financing model you choose."
She outlined several viable models: long-term private equity from investors with strategic interest across the aviation value chain, modular infrastructure development tied to phased financing tranches, and debt instruments convertible to equity as airport valuations mature. She cautioned against rigid, single-instrument commitments.
"In our context and in Nigeria specifically, we have looked at various models for both managing and financing airport infrastructure. One is concessions. Another is longer-term, sustainable private equity," Kuku said. "It really helps to have investors who are not simply looking for a five-to-seven-year exit and an eight-times return, but who are strategically aligned with your long-term goals."
She pointed to Ethiopia's hub-and-spoke model as a successful long-term vision worth studying.
Defining a smart airport in practical African terms, Kuku prioritised seamless passenger experience. "Whatever future-proof technology you build in, it must be easy and smart. For us in Nigeria, it has to be simple, quick, and fast: biometrics, automatic e-gates for immigration, bag-drop areas, and more airlines on our self-check-in kiosks."
Asked what she would change about airport authority operations across Africa, Kuku cited policy continuity and governance. "Strengthening governance structures at the management level, the board level, and at the federal government level, meaning ministerial actions as well."
Looking toward 2035, she defined success as enabling connectivity. "SAATM is something we have been preaching for years and are still struggling to deliver. As we build future-proof airports and world-class infrastructure, we also need to ensure that the fleets and the connections are there to deliver the experience."