How ineptitude fortified case for airport privatisation
Poor service delivery despite huge taxes accruing from levies may have forced the Federal Government to privatise four of the big airports in Nigeria. Experts have, however, warned of pitfalls if the process is not well managed, writes WOLE SHADARE:
The disclosure by the Federal Government to privatise some of the country’s aerodromes could have been helped by its disappointment over growing concern of the state of Nigerian airports and the need for private sector involvement in the management of the aerodromes for better service delivery, improved revenue generation, and increased contribution to the nation’s gross domestic product (GDP).
The worldwide trend to privatise airports led the Congress to direct the United States’ Federal Aviation Administration (FAA) to experiment with privatisation.
Because there always will be a public interest in the operation of major commercial airports, that are both vital assets to the community and potential monopolies, it is generally impractical to transform airports into wholly private businesses.
Most privatisation projects involve substantial regulation of the private investors, detailing the design of their services, the prices they may charge and their openness to users.