Nigeria's Airport Concession Push Gains Momentum as Ex-FAAN Boss Calls Privatisation "Inevitable"
Nigeria's aviation sector stands at a defining crossroads, and one of its most respected voices has made his position unmistakably clear. Dr. Richard Aisuebeogun, former Managing Director of the Federal Airports Authority of Nigeria (FAAN), has boldly declared that airport concession is no longer a matter of choice but an inevitable strategy if Nigeria hopes to modernise its aviation infrastructure, attract meaningful investment, and remain globally competitive. His remarks carry weight across sub-Saharan Africa's travel industry, where airport performance directly shapes tourism growth, trade flows, and passenger confidence.
Speaking at the Airport Business Summit in Lagos while presenting a paper titled "Airport Concession: The Inevitable," Aisuebeogun argued that governments around the world are steadily embracing private sector participation because airports simply perform better when run as commercial enterprises rather than state-controlled agencies. His central message was blunt: an airport managed as a government office rarely delivers the efficiency, service quality, or investment returns that modern travellers demand.
To reinforce his point, Aisuebeogun cited compelling data from Airports Council International (ACI) Europe, which shows that by 2015 around 205 European airports already had private shareholders, representing roughly 22 percent of all airports in the region. He described this figure as clear evidence of growing global confidence in private capital's ability to unlock the potential of aviation infrastructure. His argument aligns with a rising consensus across the continent that legacy state-run airport models are increasingly ill-suited to today's fast-moving travel environment.
"An airport makes an excellent investment if and when properly managed as a business," Aisuebeogun emphasised, noting that commercial operation encourages healthy competition, sharpens operational efficiency, and speeds up infrastructure delivery. He went further, warning that "when airports are run as a business, that is when they become an economic catalyst. If they are not run as a business, they become a drawback to the growth of the region." For a country like Nigeria, where aviation is central to unlocking regional connectivity and boosting inbound tourism, the observation strikes a powerful chord.
Drawing on international case studies, the former FAAN chief pointed to successful concession stories from Greece, Spain, Peru, Argentina, Brazil, and Mexico, where partnerships with private operators have transformed once-underperforming airports into world-class facilities. He highlighted how Peru's Lima Airport concession requires 47 percent of airport revenue to be remitted to the government, while Mexico opted for 50-year concession arrangements covering airport groups, with renewal options built in. Brazil's model was also praised, with concessionaires paying 5 percent of annual revenue in addition to concession fees, while assuming full responsibility for both operations and future capital investment.
Aisuebeogun stressed that governments everywhere are under mounting pressure to reduce public spending and mobilise private capital. In this environment, airport concession offers a practical, tested route to sustainable development. Yet he was quick to acknowledge that resistance to privatisation, transition challenges, and the risk of under-investment by concessionaires remain genuine concerns. To manage these risks, he emphasised the essential role of strong regulatory oversight to ensure that concession terms are honoured throughout the contract lifecycle.
"The truth is that it is inevitable that our airports have to be privatised," he asserted, adding that well-structured public-private partnerships will improve operational performance, elevate customer service, minimise risks, maximise returns, and stimulate broader economic growth. For travel professionals across Africa, the implications are enormous. Better-managed airports translate into smoother passenger journeys, expanded route networks, more attractive destinations, and stronger commercial viability for airlines serving the continent.
As Nigeria continues its journey toward modernising its aviation infrastructure, the debate around concession will only intensify. What remains clear is that airport privatisation is no longer a distant policy discussion but a pressing reality that will shape how Africa's travel industry does business in the years ahead. Trade professionals across the continent would do well to watch developments in Lagos closely, as the outcomes could redefine the very fabric of regional air travel.
