Privatization of airports inevitable, says ex-FAAN boss

Privatizing Nigeria's airports is no longer a choice but an economic imperative, according to Dr. Richard Aisuebeogun, former Managing Director of the Federal Airports Authority of Nigeria (FAAN). He asserted that embracing private sector investment is essential for developing world-class airport infrastructure and realizing the aviation industry's significant revenue potential.

Aisuebeogun, speaking at the 2026 Airport Business Summit and Expo in Lagos, noted that governments globally are increasingly relying on private investors to modernize airport facilities, enhance operational efficiency, and alleviate the strain on public finances. He presented a paper arguing that Nigeria cannot depend solely on public funding for airport development.

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Airport commercialisation is essential if we want to improve competition in airport management and attract the investments needed to modernise our aviation infrastructure.

"Airport commercialisation is essential if we want to improve competition in airport management and attract the investments needed to modernise our aviation infrastructure," Aisuebeogun stated. He believes that commercialized and properly concessioned airports will lead to the introduction of world-class standards and improved service delivery.

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The moment airports are commercialised and properly concessioned, operators begin to introduce world-class standards and improve service delivery.

Drawing on international examples, Aisuebeogun pointed to successful concession models in Europe and the Middle East, which have demonstrated that commercially managed airports are typically more efficient, financially stable, and customer-oriented than those run by governments. He highlighted the Airports Council International in Europe's advocacy for greater airport commercialization, which has transformed numerous airports by fostering competition and attracting private investment.

Aisuebeogun further explained that airport concessionaires assume both financial and operational risks, incentivizing them to expand terminals, enhance passenger experience, and invest in long-term growth. Unlike public airports, private operators actively pursue route development, engage airlines, market destinations, and implement strategies to boost passenger traffic, as passenger volume is key to airport profitability.

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The volume that determines airport profitability is passenger traffic.