The Federal Government has concessioned the Jeremiah Obafemi Awolowo International Airport, Port Harcourt, Rivers State, to Port Harcourt Airport Company Ltd. for 30 years in a move aimed at attracting private investment, improving operational efficiency and reducing the financial burden of running loss-making airports.
Festus Keyamo, Minister of Aviation and Aerospace Development, disclosed this on Thursday in Abuja during the signing of the concession agreement.
Keyamo said the arrangement, which received the approval of President Bola Tinubu and the Federal Executive Council (FEC), was part of the government’s broader strategy to reform the aviation sector and improve the management of airport infrastructure.
According to the minister, the government currently relies on revenue generated by profitable airports to subsidise the operations of facilities that consistently record losses, placing additional pressure on the aviation sector.
He explained that some major aviation gateways generate substantial revenue, but a significant portion of their earnings is channelled into sustaining less profitable airports. “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,” he said.
Keyamo noted that operating airports involves substantial recurring expenditure, including personnel costs, electricity and diesel-powered generators. He said the government also lacked the financial capacity to fully develop the commercial and non-aeronautical components of some airports, which could provide additional revenue streams beyond passenger and aircraft operations.
The minister argued that private sector participation would help unlock these opportunities, improve service delivery and make airport operations more commercially sustainable. “So much can be achieved in developing the non-aeronautical parts of these airports. Private investors have the capacity and potential to expand their use and operations,” he said.
Keyamo explained that the Port Harcourt concession was not a new policy initiative, noting that previous administrations had attempted similar arrangements but encountered opposition from aviation unions, resulting in prolonged legal disputes.
He said the Tinubu administration engaged relevant unions to address workers’ concerns and secure assurances that their welfare would be protected under the new arrangement. The minister also disclosed that the government had received concession proposals for other airports, including Benin Airport and Yola International Airport, indicating plans to expand private sector participation in the aviation industry.
Speaking on behalf of the concessionaire, Eyo Asuquo, Group Executive of R28 Holdings, assured existing airport workers that the arrangement would not lead to job losses.
Instead, he said the concession would create additional employment opportunities through increased investment and expanded airport operations. Asuquo also pledged substantial investment in infrastructure to transform the Port Harcourt airport into a modern facility capable of meeting international standards comparable to those in Europe and the United States.
The 30-year agreement transfers greater responsibility for the airport’s development and commercial operations to the private sector, with expectations of improved infrastructure, operational efficiency and revenue generation.
