The concession process for Akanu Ibiam International Airport in Enugu has crossed a major milestone, with over 70% of the work completed and the final agreement expected by the second quarter of 2025. This ambitious move, led by the Federal Government in partnership with Aero Alliance Consortium, will see the airport handed over for an initial 80-year term, with a possible 20-year extension based on performance.
Under the draft agreement, all current staff of the Federal Airports Authority of Nigeria (FAAN) at the airport will be transferred to the new operator for two years with full benefits. No forced layoffs are planned, and any redundant staff after that period will be reabsorbed by the federal government, which remains responsible for their pensions and gratuities.
The concessionaire is required to carry out major upgrades, including runway rehabilitation, terminal expansion, installation of advanced navigation and communication systems, and improvements to baggage handling and passenger facilities. These upgrades are designed to meet international standards set by ICAO and IATA, ensuring the airport is equipped for modern aviation demands.
Financially, Aero Alliance will manage non-aeronautical revenue streams like cargo, parking, and retail, while aeronautical tariffs such as landing fees will still require government approval. The agreement mandates quarterly financial reporting and gives the government audit rights, with a compliance team monitoring all contract obligations.
Meanwhile, the Enugu State government is pushing forward with plans for its own airline, Enugu Air, which is set to launch in 2025. The state’s 2025 budget allocates ₦41.1 billion to the transportation sector, including the acquisition of four new aircraft for the airline and support for the airport concession and cargo terminal development. Enugu Air aims to boost connectivity and investment in the region, with initial routes targeting key Nigerian cities and plans for regional expansion.
