FAAN Cancels MM Airport Tollgate Contract

The Federal Airports Authority of Nigeria (FAAN) yesterday took over operations at the access tollgate of the Murtala Muhammed International Airport, Ikeja, Lagos signaling the termination of the contract with concessionaire, I-Cube West Africa Limited.

The firm had sealed a contract with FAAN about five years ago to manage the toll plaza and remit about N40 million monthly under a bank guaranteed arrangement.

But spokesperson of FAAN, Yakubu Dati, who confirmed the takeover of the tollgate by the agency, said the concessionaire had failed to meet the monthly target remittance as well as effect expansion work on the tollgate.

“In the period while the firm managed the toll plaza, it was unable to meet its agreed monthly obligation to FAAN, in addition to the failure to carry out expansion work on the toll plaza,” said Dati.

Dati said it was FAAN that had to embark on a massive expansion of the toll plaza to accommodate more vehicles as well as ease the flow of traffic along the ever-busy airport road.

“The takeover of the access tollgate brings to an end the management contract of the toll plaza by one of its concessionaires: I-Cube West Africa Limited,” he added.

Dati said the takeover was imperative in line with ongoing efforts to boost revenue generation for FAAN.

He said the personnel of the commercial department of FAAN have formally commenced the management of the six-lane toll plaza, which he said had been automated for efficiency.

He said the management of the toll plaza at the Lagos Airport by FAAN personnel would enhance the revenue of the authority as well as improve commercial offering in non-aeronautical areas.

The FAAN spokesman also said work has reached advanced stage at the new access toll plaza at the cargo/hajj camp axis of the airport.

In the last two years, FAAN has revoked most of the contracts awarded by the previous administration of Olusegun Obasanjo over what it describes as “lopsided nature of the contracts” which tended to favour the concessionaire against the interest of the government and aviation sector parastatals. Most of those cases are still subject of litigations in courts.