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Published On: Fri, Aug 28th, 2020

FAAN set September 1 for review of Passenger Service Charge from N1000 – N2,000

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By Tobias Lengnan Dapam

The Federal Airports Authority of Nigeria (FAAN) has set September 1, for review of Passenger Service Charge (PSC) from N1000 – N2,000 per passenger.
FAAN Managing Director, Rabiu Yadudu stated this yesterday during a press briefing in Abuja.
He said the new review will take effect from 1st September, 2020.
According to him, the new development has already been communicated to the airliness.
“Airport management is capital intensive.
FAAN has not increased Passenger Service Charge (PSC) since 2011, despite all the huge capital investments at our airports. The current PSC charge of N1, 000 is no longer realistic as it does not correlate with realities of cost related inflation rate which the CBN has put at 12.82%. Besides, FAAN, until late 2019 was callecting the naira equivalent of PSC at an official rate of #305.50 #344.38 to a dollar when airlines were collecting at subsisting magket rate of about #362 to a dollar.
“It should be noted that ICAO’s earlier recommended that revenue generated by airports be transparently re-invested wholly in operating and developing airport facilities.
“It is also worthy of note that the federal government is increasing its direct deduction from FAAN to 40% from 2021. With such deduction, the Authority will have a shortfall of over N16 billion on overhead cost. The Authority is however engaging the federal government to exempt her from this deduction.”
He said based on the current developments, “we therefore implore stakeholder, airport users and the general public to bear with us as the FAAN is laden with so much overhead cost of operation.
“As we prepare for the resumption of scheduled international flights into the country, it may be necessary to roll out new advisories for airlines and all travelers. As soon as these are ready, we would communicate same to the general public. We shall continue to count on you to assist the Authority in publicizing our activities through your various news media.”

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