FAAN relocating HQ back to Lagos to cut costs, in response to public outcry
By Jeph Ajobaju, Chief Copy Editor
Relocation of Federal Airports Authority (FAAN) headquarters back to Lagos is meant to cut costs, in line with public agitation for a reduction in the cost of governance to save funds for social and economic infrastructure, FAAN has explained.
Former President Muhammadu Buhari moved FAAN headquarters from Lagos to Abuja in 2020 – 44 years after it was established as Airports Authority of Nigeria (AAN) in 1976.
The Central Bank of Nigeria (CBN), previously headquartered in Lagos has also decided to transfer some of its key departments from Abuja to Lagos to decongest Abuja. The departments include banking supervision, other financial institutions supervision, consumer protection, payment system management, and financial policy regulations.
Aviation and Aerospace Development Minister Festus Keyamo on Monday issued a directive for the relocation back to Lagos, Nigeria’s commercial hub, where 60 per cent of the activities of FAAN are carried out because of the huge air passenger traffic in the city.
“The other option open to the authority was to abandon the old FAAN building in Lagos to rot away and to use its scarce resources to rent an office space in Abuja for millions of naira of public money when in fact more than sixty per cent of its activities are in Lagos given the huge passenger volume of the Lagos airports.
“The stakeholders and the Minister decided against that and to save the country this waste,” a statement issued on Thursday by FAAN Public Affairs and Consumer Protection Director Obiageli Orah explained.
A memo dated January 15, quoting Keyamo and signed by FAAN Managing Director Olubunmi Kuku asked its Human Resources and Administration Director come up with the logistics of the directive.
“The Honourable Minister of Aviation and Aerospace Development has directed that the headquarters of the Federal Airports Authority of Nigeria should be relocated from Abuja to Lagos,” the memo said.
“Consequent upon the above, you are requested to provide the implication of the relocation to the management.”
It was learnt that FAAN as of December 2015 had a total staff strength of 5,308 split into technical staff (1153 or 21.72 per cent), non-technical staff (4,154 or 78.26 per cent), and executive (one or 0.02 per cent).
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Relocation meant to save public funds
Orah reiterated in her statement that relocating the headquarters is in the best interest of the aviation regulator.
“Those affected by the decision to move the headquarters to Abuja have since returned to Lagos as there is no office space for them in Abuja,” the statement clarified.
“It was ill-advised in the first place to move the headquarters to Abuja when there was no single FAAN building in Abuja to accommodate all of them at once.
“Having returned to Lagos, the Authority would be liable to pay them DTA (Duty Tour Allowance) because technically they are working out of the station as their official posting is to Abuja.
“The Minister has decided to stop this waste of public resources and rip-off on the public purse.
“The other option open to the authority was to abandon the old FAAN building in Lagos to rot away and to use its scarce resources to rent an office space in Abuja for millions of naira of public money when in fact more than sixty per cent of its activities are in Lagos given the huge passenger volume of the Lagos airports.
“The stakeholders and the Minister decided against that and to save the country this waste.”
Orah said Keyamo has unveiled plans to engage concessionaires in constructing suitable offices for FAAN in both Lagos and Abuja.
Until this development materialises, she stressed, FAAN will maintain its management of the existing building in Lagos which can accommodate all Directors and other senior officials.
She added operational offices in Abuja remain fully functional, with no reduction in operations, and the rationale for the relocation of the headquarters back to Lagos is purely technical and has no negative impact on the operational structure in both cities.