Nigeria: FAAN to set new Passenger Service Charge for domestic and international flights

Federal Airports Authority of Nigeria (FAAN) is set to begin the implementation of the new Passenger Service Charge (PSC) for domestic and international flights, as part of overall measures to boost revenue generation, according to a news report This Day.

FAAN's finances are in dire straits as revenue has fallen by about 95 percent due to the impact of COVID-19, and other cost-related inflation.

PSC increase, which would become effective on Tuesday, would culminate in a 100 percent increase for domestic passengers, who would thereafter pay N2,000 instead of N1,000.

Flights within the West African sub-region would attract USD 50 per passenger as against the current USD 20, while international flights would move from USD 50 to USD100.

FAAN said its revenue dipped by as much as 95 percent necessitating measures, including an increase in PSC to continue to render the desired standard quality service for flight operations.

FAAN Managing Director, Capt. Rabiu Yadudu, told journalists in Abuja yesterday that airport management is capital-intensive, adding that the agency has not increased the PSC since 2011 despite all the huge capital investments at the airports.

Yadudu noted that the current N1,000 PSC is no longer sustainable as it does not correlate with the realities of cost-related inflation, which the Central Bank of Nigeria (CBN) put at 12.82 percent.