By Chris Aligbe

On February 23, 2021, the Delta State Government took one of the boldest steps ever by a State Government when the Governor, Senator Ifeanyi Okowa presided over the signing of the Agreement to concession the State-owned Asaba International Airport.

The Concession of the Brownfield Airport, the first ever of its kind in Nigeria and indeed, Africa came after almost five years of painstaking due diligence and standard processes that would stand any global test in transparency and professional evaluation.

Although many a critic aired various opinions many of which centred on financial value of the concession and accruable benefits, majority of the opinions were based on ignorance of the facts and others on mischief. Some others expressed the view that the consortium of Finance Investment Development Company – FIDC, an indigenous company and a Belgium establishment Menzes Aviation, that won the Concession had no competence in airport management and development. There were those who raised issues regarding the 30 years duration of the Concession. Very few people considered that FIDC is a formidable company with impeccable financial profile and integrity while Menzes Aviation is an Aviation Company of global standing involved in airport business in Europe, Middle East, Central and Southern America.

Again, those who thumbed down the financial side of the Project based their cost-benefit analysis on very narrow and limited financial indices.

It is hard to accept that a Concession that will save the State Government N15billion budgetary provisions in 30 years and generate a total receipt of over 91billion is a dash out. Before the Concession, Asaba Airport was returning a monthly income of N10million while the State Government was spending close to five times the sum monthly.

Before the Concession, the Airport, apart from not being professionally run, was a drain on the government’s coffers as it ran on 400% deficit. A better understanding of what has been the development with the airport since the concession can be grasped from the information below.

READ ALSO: Delta Govt hands over Asaba Airport to concessionaire

The Asaba Airport Company, the umbrella company of FIDC/Menzes Consortium, took over the management of the Airport in August 2021, just a little over six months as at date.

Since then, the Asaba International Airport profile has begun to show a remarkable rise. Elements in this rising profile include, but not limited to the following:

The hitherto dinginess and little low lighting at the airport, has given way to a well-lit environment both within the terminal, tarmac, car park and approaches, thus creating an ambience of an airport.

Currently, the airport dwell lounges – Departure, Arrival and check-in areas are being redesigned to offer best passenger travel experience which includes access, easy facilitation, space, ambience and comfort. The Airport Company’s plan is to turn sitting/Dwell lounges to what is similar to Japan’s Narita International Airport. In its determination to make Asaba International Airport the choicest airport destination, the Airport Company is carrying out a massive redesign of the airport structure from the floor to the roof.

Since the take-over, the Airport has shown remarkable increase in passenger volume. Prior to the Concession, Asaba Airport was recording a passenger throughput of 8,000 monthly but is now oscillating between 20,000 and 25,000 just in six months of the concession.

In the area of revenue, the Airport, before the concession was generating a monthly income of N10million. 

Today, the airport is reported to be generating between N65million and N75million on the average monthly.

In the area of manpower development and employment, the Concession Agreement requires the Concessionaire to ensure that 25% of its staff are Deltans. But records show that, currently 65% of the staff are Deltans with remuneration far higher than the airport staff were earning before the Concession. All the staff have undergone various training both locally and international in conformity with the vision of the Concessionaire.

Beyond the above, the greatest area of excellence by the Asaba Airport Company is in Corporate Social Responsibility (CSR). Within six months of the Concession, the Company is investing a whooping N1billion to put modern street light from the point of the entry of the airport vicinity – Issele-Azagba to the Niger River Head-bridge, a distance of about 10 kilometres.

As at today, the developments are beginning to lead to trickle down effects with signs of businesses arising from push and pull factor effects of the Airport rising profile.

Today, the elated State Government has voted a huge sum for the construction of the perimeter road to tighten and heighten security.

So far, quite some critical points have been proved and these are:

•It is more beneficial to concession Airports owned by State Governments.

•A Nigerian Company with enough financial muscle with a well-tested technical Partner can be a successful Concessionaire and deliver dividends.

•The citizens as well as air travel passengers will be the better for it as is seen today with Asaba International Airport.

No doubt, the Asaba International Airport Concession is most likely to be the greatest legacy of Okowa’s administration.

That is why this legacy must be protected and the Concessionaire shielded from frustrating and expensive shenanigans of tomorrow’s political actors.

To do this, Okowa should consider the establishment of an insular statutory body that will oversee and manage the Concession to achieve given objectives and ends. Such a body will be accountable to the Government, raise Council Memos, respond to the Legislature, attend Bilateral and International Conferences to ensure that the Airport does not lose its international status given the emerging and fluxy dynamics of Nigeria’s aero-politics. Such a Statutory Body will mediate in conflict resolutions between the main Concessionaire and Sub-Concessionaires as well as between the Airport Management and other operators. The Body will carry out security oversight as well as discuss future development of the Airport. This Statutory Body should be staffed initially by the key personnel that midwifed the Concession with tenured terms approved by State Assembly.

The Governor must not just beat his chest today and leave tomorrow to the “dogs”. Even if the Governor is too sure of his beloved successor, he should remember the tragedy of TINAPA, Donald Duke’s Legacy Project that had very high palpable potential to turn Calabar into a global village and destination. When his political friend and brother Liel Imoke took over, the Project became a ghost. Who lost? Cross Riverians, Nigerians and Donal Duke.

Mr. Governor, you did well and have set a benchmark for your peers. Safeguard this Legacy. It will not cost the State 25% of the annual spend on the Airport before the Concession. A Body of not more than 15 to 20 personnel is what is required. Otherwise, not to protect it today could leave you with regrets and pain engendering nostalgia tomorrow.

Chris Aligbe, Aviation Consultant.