Aviation Workers Drag FG To Court Over Airport Concession

The Federal Airport Authority of Nigeria (FAAN) and the Minister of Aviation, Hadi Sirika, have been sued by four aviation sector trade unions in Lagos' National Industrial Court over the country's proposed international airport concessions. The unions contend that the 36 State Governments, the 774 Local Government Councils, and the Federal Government of Nigeria must all give their approval and authorization for the concession process to move further.

The National Union of Air Transport Workers (NUATE), the Association of Nigeria Aviation Professionals, the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN), and the Nigerian Union of Pensioners, FAAN Branch are plaintiffs in a lawsuit seeking a declaration that the Federal Republic of Nigeria is the owner of the airports and a permanent injunction to prevent the defendants from concessioning them.

According to the unions, FAAN has entered into agreements to concession the Aminu Kano International Airport in Kano, Kano State, the Port Harcourt International Airport in Port Harcourt, Rivers State, the Murtala Mohammed International Airport in Ikeja, Lagos State, and the Nnamdi Azikiwe International Airport in Abuja, Federal Capital Territory, in violation of the Board of Directors' statutory duties. The unions argued that the proposed concession could not be justified because the terminals don't require any additional investments and the concession's scope was extended to include FAAN housing estates as well as the area around the terminals without taking asset valuation into account. The FAAN and Minister of Aviation arbitrarily set an unequal ratio of 60-40 profit-sharing in the concessionaire's favor and outlawed trade unionism in the aviation sector. They also asserted that the management contract option is more advantageous to the country than a concession. The defendants have also neglected to take care of the unpaid pension and severance benefits owed to the agency's current and former employees.

The FAAN generates about N70 to N75 billion annually and deposits N1 billion into the Federation Account while paying N2.3 billion in monthly salary to its 8,000 employees. However, the defendants have chosen to employ claims in violation of FAAN's Revised Terms of Service 2021. Several meetings have been ineffective, and a judge has not yet been designated to hear the case.

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