馃嚦馃嚞NigeriaWest Africa
FAAN Managing Director discusses airport challenges, clarifies role in flight delays, and outlines strategies for improvement
via Punch Nigeria9 min read
Olubunmi Kuku, the Managing Director of the Federal Airports Authority of Nigeria FAAN, addressed the challenges facing Nigeria's airports, emphasizing that these issues are fundamental rather than gender-related, despite her being the first female to hold the position. She identified a threefold problem: infrastructure deficits impacting passenger experience, challenges within the entire airport ecosystem affecting operators like airlines and handling companies, and human capital deficiencies and workflow management issues among FAAN staff. Kuku explained that FAAN's role is to manage and operate federal government-owned airports and provide statutory services like fire and rescue, and aviation security. She clarified that while FAAN is visible to passengers, the Nigerian Civil Aviation Authority NCAA is the primary regulator for the aviation industry, including flight delays and cancellations. FAAN's responsibility in this regard is to communicate delays through its infrastructure, based on information provided by airlines. To address touting, FAAN launched "Operation Air Clean," penalizing individuals and their affiliated organizations, and implementing access control and surveillance. Kuku urged Nigerians not to engage with unauthorized individuals at airports. She also highlighted the opportunities for Nigeria through her role as ACI Africa Vice President, including access to data, advocacy with ICAO, and leveraging airport service quality assessments to improve infrastr
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Mrs. Olubunmi Kuku, the Managing Director of the Federal Airports Authority of Nigeria FAAN, has advised state governments against initiating airport projects without thorough economic and feasibility assessments. She highlighted that less than 10 percent of Nigerians currently travel by air, with approximately 17.5 million air travelers recorded in 2025 out of a population of 220 million. Kuku emphasized that building and maintaining airports requires substantial financial commitment beyond just terminal construction, including runways, firefighting equipment, and trained aviation security personnel to meet global standards. She urged states to consider the economic viability of such projects and to actively create economic activities like sporting events, manufacturing, agriculture, or cargo operations to generate passenger and cargo traffic. While acknowledging that some airport projects are justified by security and accessibility concerns, Kuku stressed the importance of also strengthening road and rail infrastructure as part of a multimodal transportation approach. She warned that airports lacking sustainable traffic projections and supporting infrastructure could become expensive assets with limited returns.
Twelve leading fast-moving consumer goods companies listed on the Nigerian Exchange collectively reduced their finance costs by 23.02 percent to N67.66bn in the first quarter of 2026, down from N87.90bn in the same period of 2025. This N20.23bn year-on-year decrease signals improved profitability, lower debt burdens, and a greater reliance on equity financing. Industry analysts attribute this trend to stronger earnings, deleveraging efforts, and increased access to equity financing due to a rally in the Nigerian capital market, which has lessened dependence on expensive bank loans. Dangote Sugar Refinery, despite still having the highest finance cost in the sector, contributed significantly to the decline with a 4.73 percent reduction. Nestl茅 Nigeria saw a 27.88 percent fall, while Nigerian Breweries achieved a 46.09 percent cut. Other companies like Guinness Nigeria, BUA Foods, Cadbury Nigeria, and NASCON Allied Industries also reported substantial reductions. However, some firms, including Champion Breweries, International Breweries, Northern Nigeria Flour Mills, and PZ Cussons Nigeria, experienced increased finance costs during the period. The Chief Executive Officer of Economic Associates, Dr. Ayo Teriba, noted that companies are enjoying cheaper financing by attracting funding through the equity market, while an Investment Associate at CardinalStone, Kayode Eseyin, highlighted improved earnings and aggressive debt repayment as key factors. A research analyst, Mobifoluwa
Must ReadThe Chartered Institute of Stockbrokers stated that FTSE Russell's decision to defer Nigeria's reclassification to Frontier Market status is a temporary review, not a reversal of capital market reforms. The institute highlighted Nigeria's new T+1 settlement cycle, implemented on June 1, 2026, as a landmark achievement, making it the first African capital market to adopt this shortened settlement period. This reform aligns Nigeria with global markets, improving efficiency, reducing settlement risk, and enhancing liquidity. FTSE Russell's concerns reportedly center on whether the T+1 cycle could create a prefunded market for international investors. However, the CIS clarified that Nigeria's migration to T+1 has not altered its Delivery versus Payment settlement model, meaning foreign portfolio investors are not required to prefund transactions. The institute emphasized that the review period offers an opportunity for stakeholders to engage with FTSE Russell and demonstrate the efficiency of Nigeria's settlement infrastructure. They cited Pakistan's experience, which adopted T+1 settlement while retaining its Frontier Market status, as evidence of compatibility. The CIS urged Nigerian capital market stakeholders to continue reforms, including strengthening foreign exchange accessibility and improving cross-border settlement coordination, to address outstanding concerns and secure Nigeria's return to Frontier Market status.