FG : Controversy trails planned concession of Lagos, Abuja, Kano, P’Harcourt airports - Fountain Prime Schools

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Monday, 16 October 2017

FG : Controversy trails planned concession of Lagos, Abuja, Kano, P’Harcourt airports

“We will resist the plan by the Federal Government to concession the international airports in Lagos, Kano, Port Harcourt, and Abuja because the whole exercise is a fraud and inimical to the interest of Nigeria and its citizens,” said the Secretary General of the National Union of Air Transport Employees (NUATE), Mr. Olayinka Abioye at a press conference held in Lagos last week to demand that the government halt the concession exercise.
“And if the government feels it has the private sector experts that can manage or turn around the fortunes of Nigeria airports, why not concession the non-vibrant airports to them and let us see the magic that they will perform. Why start the concession exercise with the four lucrative airports while leaving out the 18 other airports that are dependent on the four for their survival?” Abioye queried.
Abioye, who spoke on behalf of three labour organisations, the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN), the National Union of Air Transport Employees (NUATE) and its ally, the Nigeria Union of Pensioners (NUP) gave the Federal Government a 15-day ultimatum (expiring on Oct 25,2017) to rescind it’s airport concession policy or aviation workers would down tools across all airports in the country in protest.
According to him, the three unions were of the view that the entire concession exercise was shrouded in secrecy and devoid of transparency.
“Where is the blueprint of the concession project vis-a-vis the feasibility study conducted on the projects? No one has seen this,” he said. 
Why concession
With dwindling revenue, the Federal Government says it has run out of cash to continue pumping money into the maintenance, upgrade, and expansion of infrastructure of the four airports to meet with contemporary needs and also cope with the high volume of passenger and airline traffic that they now attract. But aside the issue of paucity of funds, there are also concerns over the high level of mismanagement of funds earmarked over the years by successive governments for these airports. The Federal Airports Authority of Nigeria (FAAN) manages the airports on behalf of the Federal Government. The government’s thinking, therefore, is that it is only the private sector that would be able to inject the requisite funds to boost the state of infrastructure at these airports and also halt or check the graft in the industry.      
Labour’s position
Labour, however, insists that the decay in airports infrastructure in Nigeria had to do with continuous government interferences and not with management issues on the part of FAAN.
“The problem of the sector is not the ability of FAAN to manage its affairs properly and in the wisest of ways,” said Abioye. “But the continued ministerial/official meddlesomeness inflicted on the industry and the pauperization, essentially of FAAN through several policy somersaults, as no clear policy has been sustained in the last 25 years arising from regular change of government and ministers who initiate their own agenda/policies while dismantling existing ones, not minding the success or otherwise of such policies,” he added.
Pitfalls
Aviation sector labour unions are however opposed to the concession policy alleging that the Minister of State for Aviation, Mr. Hadi Sirika is not transparent in his handling of the project. For instance, they allege that key stakeholders like airport workers, existing investors and labour unions had not been carried along in the course of arriving at the choice of concession as the panacea to the challenges facing the airports.
“How did the Minister get to the ‘concession model’ out of the many available models?,” queried Abioye. “Where and who was this discussed with? How did we pick concession out of all the models within the Public Private Partnership (PPP) initiative?,” he demanded in an interview granted Daily Sun.
According to him, Nigerian aviation workers have critically analyzed the Public Private Partnership (PPP) concept as a veritable vehicle to drive the process of engendering revenue growth, quality service delivery and maintenance of facilities, infrastructures and returns on investment and accepted its workability, if driven with good intentions and in a transparent manner.
He however pointed out  that given the penchant with which Nigeria’s political class makes pronouncements without deep thoughts, labour has become deeply worried and hugely concerned about the haste, hush-hush and secret disposition of the Minister of Aviation in actualising the concession project without following due diligence as practiced worldwide.
“We have also observed with grave concern, the deceit and coercion that goes with the current process of concessions, that is lacking in transparency which is hugely required at this moment,” he said. “What facts were presented to the Federal Executive Council (FEC) for the approval to concession, as due diligence was never followed up to the time the said FEC approval was granted and announcement made by the Vice President, Yemi Osinbajo?” he asked. 
Transaction Advisors
In a document made available to Daily Sun, the unions faulted the appointment of Proserve Energy Service Limited, an oil and gas consultant as Transaction Advisors (TA) to the concession project as not having followed due process.
Said the unions, “How was the Transaction Advisors (TA) engaged and where did the bidding for such sensitive matter come up and when that no one saw or heard of it.
“How could a company named Proserve Energy Service Limited, an oil and gas consultant spearhead concessions in the Aviation Industry? Let it be known that the said Transaction Advisors have no understanding or knowledge of aviation, so how could such persons be a part of the scheme if not for pecuniary reasons and nepotism?”
The unions also allege that without any budgetary provision and for a government that is lamenting of severe funding challenges, about N1.5billion had already been set aside for the Transaction Advisors to use in road shows, adverts, and transport and logistics to woo foreign investors.                                                  
Ambiguities
Daily Sun learnt that another worrisome angle to the entire concession process has to do with the Terms of Reference which is  not comprehensive enough to provide full details of the scope of work upon which the Transaction Advisors were to act upon.
“The areas of the airports meant for concession were not listed out in the Terms of Reference.”

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