The Federal Airports Authority of Nigeria has initiated a process to improve funding to its contractors through commercial banks.At a stakeholders’ meeting on Tuesday, The Managing Director of FAAN, Mr Saleh Dunoma, said the scope involved working with selected financial institutions to provide liquidity to the agency’s major contractors, through direct and contingent funding.
Dunoma, who was represented at the meeting by the Director of Engineering Services of FAAN, Mr Salisu Daura, said the initiative would help to develop a financing mechanism to optimise the cashflow of the agency as well as provide support to its contractors to enable them access opportunities for working capital enhancement.
“Aviation industry is highly technical and capital intensive. The sector in recent past has undergone incisive and extensive transformation aimed at making our airports comfortable, safe, secure and conducive for commercial purposes. The achievements to date would not have been possible without support from all stakeholders,” he said.
Dunoma said the agency had recorded revenue increase of 5.2 per cent as of November, compared to the same period in 2017.
“A few collective and collaborative efforts have been embarked upon and several measures have been put in place to improve revenue generation and collection. As we develop more infrastructure, we will have better revenue increase,” he added.
He said investment prospect abound in the industry, especially FAAN, and encouraged banks and the contractors to take advantage of the opportunities through constructive partnership in the overall interest of all.
“We are trying to provide comfort for these contractors that are always complaining of lack of funds and also assure the banks that the agency was credit worthy. This, however does not stop the banks from doing due diligence,” he said.
The meeting had representatives from First Bank Plc, FCMB, Fidelity Bank, Union Bank, Zenith Bank, Access Bank, Polaris Bank and Keystone Bank while Tam Tam Nigeria Limited, Inland Chips Nigeria Limited and Pencks Limited, among others represented the contractors.
The Head, Specialised Markets and Capital Market Originations of Union Bank, Olusola Olubi, said the bank was committed to infrastructure development and would be willing to give short-term financing to improve funding of projects.