FAAN Calls for Aviation Financing Reform, Rail Integration
The Federal Airports Authority of Nigeria (FAAN) has defended the Federal Government’s decision to renegotiate the concession agreement for Murtala Muhammed Airport Terminal II (MM2), saying it was aimed at restoring investor confidence and ending years of disputes over one of Nigeria’s most controversial aviation PPP projects.
FAAN Managing Director Olubunmi Kuku explained at the African Air Transport Convention and Expo 2026 in Togo that successful PPPs depend not only on capital but also on institutional credibility, regulatory certainty, and project discipline.
She said the administration undertook extensive renegotiations of the MM2 concession, which have now been concluded and approved by the Federal Executive Council.
“It’s now been resolved at the Federal Executive Council level,” she noted.
Kuku added that the resolution would strengthen investor confidence and serve as a framework for future concession agreements.
“It ensures that future concession contracts are fair to both government and the private sector,” she said.
Looking beyond MM2, she called for stronger regional commitments to aviation financing and transport integration, including the creation of national aviation delivery teams to coordinate infrastructure projects across aviation, security, and transportation.
She cautioned against creating new aviation-focused financing institutions, urging existing banks to establish specialised aviation desks to better understand industry needs and support project preparation.
Kuku cited the planned extension of the Lagos Red Rail Line to airport terminals as an example of opportunities for co-financing arrangements supported by airport-generated cash flows.
She concluded that stronger partnerships, better contract management, and coordinated infrastructure planning are critical to unlocking long-term growth in Nigeria’s aviation sector.