FAAN hikes service charge for domestic, international flights

The Federal Airport Authority of Nigeria (FAAN) has announced an increase in the passenger service charge for domestic and international flights with effect from September 1.
FAAN Managing Director, Capt. Rabiu Yadudu made this known in Abuja while addressing journalists.
Capt. Yadudu stated that the N1,000 passenger service charge for domestic is no longer feasible, as such the charge has been jacked up to N2,000, while the charge for ECOWAS countries is $300 and $500 for all other international flights.

Justifying the upward review, the FAAN chief executive said that the action was a matter of necessity, disclosing that the agency took the step if it must continue delivering quality service to airport users.

“FAAN hasn’t increased passenger service charge since 2011, despite all the huge capital investments at our airports. The current charge of N1,000 is no longer realistic as it doesn’t correlate with realities of the cost-related inflation rate which the Central Bank of Nigeria (CBN) has put at 12.82 percent.

“Besides, FAAN until late 2019 was collecting the naira equivalent of the passenger service charge at an official rate of N305.50-N344.38 to the dollar when airlines we’re collecting at subsisting market rate of about N362 to the dollar.

“It should be noted that ICAO’s recommendation in Document 9562 stipulates that revenue generated by airports be transparently reinvested wholly in operating and developing airport facilities,” Yadudu stated.


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