A group of former Managing Directors and Directors of the Federal Airports Authority of Nigeria (FAAN) have opposed the concession of major airports in Nigeria including that of Lagos and Abuja.
They specifically warned that the concession of the airport terminals built through a Chinese-funded loan of $500 million could land the country into trouble following the Mezzanine Clause identified in the loan agreement.
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The airport terminals slated for concession are the Murtala Muhammed Airport (MMA), Lagos, the Nnamdi Azikiwe International Airport, Abuja; Mallam Aminu Kano Airport, Kano and Port Harcourt International Airport, Rivers State.
In a letter to the House of Representatives Committee on Aviation, which recently intervened in the contentious issue of concession, the former heads said China could seize the facilities in line with the Mezzanine clause.
Daily Trust reports that the House Committee had suspended the project to enable the Minister of Aviation, Senator Hadi Sirika, to make a presentation before it.
The letter was jointly signed by nine (9) former directors including Ibrahim Mamman, Sani Babam, Isaac Sakpere, Sule John Ozenua, Lawrence Adimonye, Muhammad Sadiq, Olufemi Shittu, Rabiu Baba, and M.A. Enigbokan.
“The new terminal buildings in these five international airports were constructed with a $500m China loan. We are all now aware of the Mezzanine clause in all Chinese sponsored infrastructures by which they lay claim to the infrastructure should the host country default in payment.
“If Nigeria should fail to pay as at when due, China would seize the infrastructure, administer it and recover their investment.
“The most reasonable thing to do is for FAAN to administer them, collect the revenue and pay back the loan.”
