The Federal Airports Authority of Nigeria (FAAN) has stated that it would begin the implementation of the increment in Passenger Service Charge(PSC) domestic from N1,000 to N2,000, while that of international would be increased from $50 to $100 by August 1, 2020.
This was disclosed in a letter to the Chairman of the Airline Operators of Nigeria written by the Managing Director of FAAN, Capt. Hamisu Yadudu, dated June 22, 2020, with the heading, “Implementation of the Approved New Passengers Service Charge(PSC) Effective from August 1, 2020.”
sYadudu stated that the increase was premised on the approval given by the Aviation Minister in the attached letter with referenced FMT/FMACOM/T/69 dated 3rd August 2017 which was sought with the intention to improve and upgrade the airport infrastructure among others.
According to him, “We recently informed the Minister of Aviation of our intention to commence the implementation effective August 1, 2020.”
Yadudu stated that the engagement of the Nigeria Civil Aviation Authority (NCAA) and relevant stakeholders had led to the delay in the implementation from 2017 to date.
He listed some of the engagements to include: setting up of in house committee to come up with strategies for smooth implementation, sensitisation of the general public, engagement of stakeholders, airlines, etc, setting up of joint task force with membership drawn from FAAN, AOC, AON, a fallout of enlarge stakeholders meeting to ensure that the requirement specified by stakeholders are met with very huge progress recorded so far.
FAAN, he stated would continue to engage the public and the relevant stakeholders to ensure smooth implementation.
He contended that the cap on the value of PSC is simply outdated as the last review of PSC on domestic routes from N350 to N1000 and US$35 to US$50 dollars on the international route was carried out on May 1, 2022, and March 21, 2011, respectively, all seven (7) years ago.
“This does not correlate with the prevailing economic situation and the index to meet with the needs of today and future growth of passenger traffic and airport development, most especially for the airport to upgrade post-COVID-19,” part of the letter reads.
He cited Bi-Courtney Aviation Services Limited(BASL) operators of the MMA2, who according to him for years have been charging N2500 on its PSC and despite the operating PSC some domestic airlines still moved from the General Aviation Terminal (GAT) to the MMA2 because of FAAN’s inability to expand the GAT.
“This increase, therefore, affords FAAN the needed funds to upgrade our facilities to accommodate new airlines including the anticipated national carrier.”
FAAN spokesperson, Henrietta Yakubu, said, the review is still a proposal, but Yadudu stated in his letter that it could become effective from August 1.
He noted that the rates are premised on the approval given by the Minister of Aviation, Hadi Sirika, in a letter dated August 3, 2017.
He said various stakeholders, including the Nigerian Civil Aviation Authority (NCAA), have also been consulted since 2017.