The Federal Government has transferred the Jeremiah Obafemi Awolowo International Airport in Port Harcourt, Rivers State, to Port Harcourt Airport Company Ltd under a 30-year concession. The agreement, signed on Thursday in Abuja, is designed to reduce the fiscal burden of running airports that do not generate enough revenue and to draw private investment into the aviation sector.
Minister of Aviation and Aerospace Development Festus Keyamo said the arrangement had been approved by President Bola Tinubu and the Federal Executive Council. He explained that revenue earned from the country's larger and more profitable airports is currently used to support loss-making facilities, a practice that places additional strain on the sector's finances.
"The reasoning behind it is that some of our airports are being run at a loss, and we should say it the way it is. We generate substantial revenue from some of our primary airports and major gateways, and most of those profits are ploughed into sustaining the loss-making ones," Keyamo said.
The minister noted that airport operations carry heavy recurring costs, including personnel expenses, electricity and diesel-powered generators. He said the government does not have enough financial capacity to develop the commercial and non-aeronautical sides of some airports, which could yield income beyond passenger and aircraft operations. Private participation, he added, could unlock that potential and improve operational efficiency.
Keyamo said the Port Harcourt concession was not an abrupt policy shift, pointing out that previous administrations had attempted to implement it but encountered resistance from aviation unions, leading to prolonged legal disputes. He said the Tinubu administration engaged the unions to address workers' concerns and safeguard their welfare throughout the process.
The ministry has also received concession proposals for Benin Airport and Yola International Airport, signalling plans to extend private sector participation across the aviation industry.
On behalf of the concessionaire, Eyo Asuquo, Group Executive of R28 Holdings, said the deal would create additional jobs rather than lead to job losses. He pledged significant investment to upgrade the Port Harcourt facility to standards comparable with airports in Europe and the United States.
