A former Managing Director of the Federal Airports Authority of Nigeria, Dr Richard Aisuebeogun, has said that the privatisation and commercialisation of Nigeria’s airports is no longer a matter of choice but an economic necessity.
He argued that the country must embrace private sector investment if it hopes to build world-class airport infrastructure and unlock the aviation industry’s enormous revenue potential.
He said this at the 2026 Airport Business Summit and Expo held at the Murtala Muhammed Airport, Lagos.
Aisuebeogun said governments around the world are increasingly turning to private investors to modernise airport facilities, improve operational efficiency and ease the burden of dwindling public finances.
Presenting a paper titled Airport Concession: The Inevitable during the summit, themed ‘Unlocking Airport Revenue Potential: Strategies and Partnerships,’ the aviation expert maintained that Nigeria could no longer afford to rely solely on public funding to develop its airports.
He stated, “Airport commercialisation is essential if we want to improve competition in airport management and attract the investments needed to modernise our aviation infrastructure.
“The moment airports are commercialised and properly concessioned, operators begin to introduce world-class standards and improve service delivery.”
According to Aisuebeogun, airports have become some of the world’s most attractive infrastructure assets because of their capacity to stimulate economic growth, create jobs, facilitate trade and drive regional development.
He noted that successful concession models implemented across Europe and the Middle East have demonstrated that commercially managed airports are generally more efficient, financially sustainable and customer-focused than those operated exclusively by governments.
Drawing from international experience, he cited the position of Airports Council International in Europe, which has consistently championed greater airport commercialisation. The policy, he said, has transformed nearly half of Europe’s airports by encouraging competition, improving operational performance and attracting significant private investment.
Beyond infrastructure, Aisuebeogun stressed that airport concessionaires assume both the financial and operational risks associated with managing airport facilities, giving them greater incentive to expand terminals, improve passenger experience and invest in long-term growth.
Unlike publicly managed airports, he explained, private operators actively pursue route development, engage airlines, market destinations and implement business strategies designed to increase passenger traffic.
He said, “The volume that determines airport profitability is passenger traffic. Airlines alone cannot sustain an airport. Passenger numbers remain the key driver of airport revenues.”
He observed that governments across the globe are under mounting pressure to reduce public expenditure, making it increasingly difficult to finance major airport expansion projects without private capital.
He acknowledged that airport privatisation often attracts concerns ranging from labour resistance and fears of profit-driven management to doubts over investors’ willingness to undertake large-scale infrastructure projects, maintaining that Nigeria already possesses adequate institutional safeguards to protect the public interest.
He stressed, “The regulatory framework already exists. What is required is effective oversight to ensure that concessionaires meet their investment commitments while maintaining service standards.”
Despite his strong support for commercialisation, Aisuebeogun also dismissed suggestions that the government should completely relinquish ownership of airports. Given their strategic importance to national security, economic stability and sovereignty, he said governments would always retain a significant role in the sector.
Instead, he advocated well-structured Public-Private Partnerships, describing them as the most balanced approach to airport management.
“The government is unlikely to surrender total ownership of airports because of their strategic importance. The solution lies in carefully designed Public-Private Partnerships that preserve government regulatory oversight while allowing private investors to provide the capital, innovation and operational expertise needed to transform our airports,” he maintained.
