FAAN re-strategises for transformation, introduces commercial blueprint
BY CHUKWUEMEKE IWELUNMO
The Federal Airports Authority of Nigeria (FAAN) is ramping up efforts to reposition its commercial and business landscape through major process reforms, infrastructure enhancements, and digital transformation.
Speaking during a recent stakeholder engagement, with the theme: “Strengthening Partnerships for Sustainable Growth and Development”, the Director of Commercial and Business Development, Miss Adebola Agunbiade, unveiled an ambitious blueprint aimed at maximising non-aeronautical revenue and strengthening investor confidence across the country’s airport ecosystem.
Agunbiade explained that her department oversees a broad portfolio, including public-private partnerships (PPP), retail businesses, land leases, advertising, and tourism initiatives, as part of FAAN’s drive to optimise revenue streams and improve operational efficiency.
One of the focal points of her presentation was the ongoing effort to harness the economic potential of the December travel surge, commonly dubbed Detty December.
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FAAN, she noted, is crafting new products and initiatives designed to tap into the seasonal spike in passenger traffic, creating fresh revenue windows for the Authority.
She highlighted the breadth of FAAN’s commercial footprint, revealing that Lagos alone hosts over 500 concessionaires across its terminals and cargo sections, while Abuja accounts for more than 300.
“These numbers reflect not just our commercial reach, but the importance of our business partners. We can’t afford to take any of them for granted,” she emphasised.
To better manage this expanding commercial space, FAAN has categorised all airport businesses into four structured bands, A through D—based on their size, type, and revenue potential.
Band A comprises high-value businesses that contribute significantly to revenue, while Band D includes smaller operations like bookstores and convenience shops, which dominate about 32 per cent of the commercial mix across key airports.
This restructuring, Agunbiade explained, is designed to standardise operations and simplify business engagement.
“We have introduced uniform standards for signage and space usage to improve airport aesthetics and create a more organised environment,” she said, adding that letters have already been sent to tenants outlining these new requirements.
Digital transformation is also at the heart of FAAN’s new commercial strategy. A new digital platform, set to be launched soon, will streamline the application and approval process for retail and land assets.
This move, she noted, will enhance transparency and allow for real-time data access on space availability and revenue tracking.
“We’re going cashless across all our airports,” she announced. “Physical invoices will be replaced with digital payment channels, cards, USSD, and payment links, making transactions more secure and efficient. This isn’t just a modernization move; it’s a revenue protection strategy.”
FAAN has also introduced a new car hire category, the Smart Hub, targeting operators of electric and hybrid vehicles, in line with global sustainability trends.
Meanwhile, traditional, VIP, and limousine services are being restructured to align with the premium nature of the airport environment.
Agunbiade noted that the Authority is activating its monitoring and enforcement units to ensure strict compliance with lease terms and business obligations.
“Without enforcement, even the best policies won’t deliver results,” she warned. “From signage uniformity to lease renewals and performance reviews, our teams will be out in full force to ensure standards are met.”
In line with modern airport branding practices, FAAN is also intensifying focus on below-the-line advertising opportunities, lampposts, lounges, car parks, and avio-bridges, offering investors new visibility channels previously underexplored.
Addressing concerns around tariffs, Agunbiade admitted it remains a sensitive topic. However, she stressed that a review was inevitable.
“Many of our current rates are outdated. As a self-funded agency, we must find a balance—ensuring pricing is competitive, fair, and sustainable, while also meeting our financial obligations.”
Lease agreements are undergoing significant restructuring to close gaps that have allowed unutilized spaces to lie dormant.
“We have investors knocking on our doors, but many spaces are tied up in inactive leases. That must change,” she declared.
Highlighting FAAN’s 2023–2024 revenue scorecard, Agunbiade revealed that 92% of earnings still come from aeronautical sources, an imbalance the agency is determined to correct.
“This is why we’re doubling down on commercial expansion. A well-diversified income base is non-negotiable.”
She also reaffirmed FAAN’s commitment to staff welfare and capacity development.
“Innovation without empowered staff will not work. We’re investing in training and remote work systems to ensure our teams are equipped for the future.”
The Director called for stronger collaboration between FAAN and its business partners.
“We are committed to transforming Nigerian airports into smart commercial hubs. But we cannot do it alone. If we work together, we all win. We make money together,” she said.
According to her, this signals a new era for FAAN, one where structure, strategy, and digital innovation are taking centre stage to redefine how airport business is done in Nigeria.
