Many governments worldwide are now divesting from airports development and engaging private companies to develop and run them for better services and to reduce waste of government resources.
UK, Saudi Arabia, Brazil, India, Singapore, Argentina, Peru, Spain, Gabon and recently Zimbabwe are among the growing list of countries that have privatised their aviation sector.
Nigeria plans to privatise or concession her airports in 2015 after an expensive remodelling programme that gulped billions of naira, sparking criticisms from citizens.
Even more ridiculous, according to some critics, is that prior to the commencement of the privatisation in the sector, government has gone on a borrowing spree to develop terminals it will eventually manage through the Federal Airports Authority of Nigeria (FAAN).
The Nigerian government last year took a $500 million loan from the Export-Import Bank of China to fund new terminals in four cities including the capital, Abuja, the commercial hub of Lagos, the southern oil centre of Port Harcourt and the northern city of Kano. The contract was won by China Civil Engineering Construction Corporation.
The facility was obtained on a concessionary interest rate of 2.5 per cent, repayable in 20 years with a grace period of seven years.
The rationale behind obtaining some of these loans in the past has often been contentious given the fact that most times these borrowings which are done to improve structures, only end up having these structures completely derelict and mismanaged.
The level of decadence of national assets, such as stadia, refineries, steel plants, aluminium smelter plants, roads, bridges and many others, speak volumes of the recklessness to which government has descended in obtaining and utilising these loans.
01/01/15 Daily Trust
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UK, Saudi Arabia, Brazil, India, Singapore, Argentina, Peru, Spain, Gabon and recently Zimbabwe are among the growing list of countries that have privatised their aviation sector.
Nigeria plans to privatise or concession her airports in 2015 after an expensive remodelling programme that gulped billions of naira, sparking criticisms from citizens.
Even more ridiculous, according to some critics, is that prior to the commencement of the privatisation in the sector, government has gone on a borrowing spree to develop terminals it will eventually manage through the Federal Airports Authority of Nigeria (FAAN).
The Nigerian government last year took a $500 million loan from the Export-Import Bank of China to fund new terminals in four cities including the capital, Abuja, the commercial hub of Lagos, the southern oil centre of Port Harcourt and the northern city of Kano. The contract was won by China Civil Engineering Construction Corporation.
The facility was obtained on a concessionary interest rate of 2.5 per cent, repayable in 20 years with a grace period of seven years.
The rationale behind obtaining some of these loans in the past has often been contentious given the fact that most times these borrowings which are done to improve structures, only end up having these structures completely derelict and mismanaged.
The level of decadence of national assets, such as stadia, refineries, steel plants, aluminium smelter plants, roads, bridges and many others, speak volumes of the recklessness to which government has descended in obtaining and utilising these loans.
01/01/15 Daily Trust
