FG Signs 30-Year Concession Deal For Port Harcourt Airport, Eyes Benin, Yola
The Federal Government has signed a 30-year concession agreement for the Port Harcourt International Airport as part of efforts to attract private investment, improve operational efficiency and boost the commercial viability of the nation’s airports.
The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this on Thursday in Abuja during the signing of the agreement with Port Harcourt Airport Company Limited.
Keyamo said the concession was designed to improve airport operations, increase revenue generation and unlock the economic potential of the facility, which he described as having significant commercial opportunities.
He explained that the Federal Government had been relying on revenue generated by major airports to subsidise the operations of other airports running at a loss, placing additional pressure on government finances.
According to him, the high cost of airport maintenance, including personnel expenses, diesel and other operational requirements, has made private sector participation necessary to ensure sustainability.
The minister noted that the government lacked sufficient resources to develop the non-aeronautical components of some airports, stressing that private investors could bring the needed capital, expertise and innovation.
He said the concession agreement received the approval of President Bola Tinubu and the Federal Executive Council, adding that previous attempts by successive administrations to concession airports had been hindered by labour disputes and legal challenges.
Keyamo, however, attributed the successful conclusion of the agreement to consultations and negotiations with aviation labour unions, noting that their concerns had been addressed before the deal was signed.
He assured aviation workers that the arrangement would not result in job losses or a reduction in their existing conditions of service.
According to him, President Tinubu had specifically directed that workers’ welfare must be protected throughout the concession process.
The minister also disclosed that the concessionaire would undergo performance assessments every five years to ensure compliance with the terms of the agreement.
He warned that the Federal Government reserved the right to reclaim the airport if the company failed to meet the agreed performance standards.
Keyamo further revealed that the government had received proposals from investors interested in developing other airports, particularly those in Benin and Yola, as part of efforts to make more aviation facilities commercially sustainable.
He identified bureaucratic bottlenecks in public institutions as another challenge affecting airport development, arguing that private operators were better positioned to make timely decisions, attract investments and introduce innovative commercial activities.
The minister said airports could generate substantial revenue beyond passenger and aircraft-related charges through the development of shopping malls, supermarkets, conference centres and other commercial facilities.
He described Port Harcourt’s strategic location around the Gulf of Guinea as an advantage that could position the airport as a major regional aviation hub.
Speaking on behalf of the concessionaire, Group Executive of R28 Holdings, Eyo Asuquo, said the company was committed to introducing international standards, improving facilities and transforming the airport into a major aviation and commercial destination.
Asuquo described the concession process as rigorous, noting that the investors had undertaken extensive engagements within and outside Nigeria to demonstrate their capacity to deliver the project.
He equally assured aviation workers that the agreement would not lead to retrenchment, adding that the proposed expansion would create additional employment opportunities.
He said the company’s vision was to transform the facility into an airport city and establish Port Harcourt as a major aviation hub for the Gulf of Guinea.
Asuquo added that the company would create opportunities for other interested investors to participate in the airport’s development.
