The Federal Airport Authority of Nigeria (FAAN), recently announced that it has entered into a 10 years concession agreement with DUFRY, a global retailer that specializes in the management of duty- free shops at major airports, across the world.
By this development, it means in no distant time from now, the Nigerian flying publics and foreigners alike will enjoy the luxury of shopping in an internationally acclaimed duty-free shops at least in two major airports across the country, namely: Murtala Mohammed International Airport (MMIA), Lagos and Nnamdi Azikiwe International Airport (NAIA), Abuja. Both shops will deal on items like: perfumes, wine and spirits, confectionery, fashion and accessories, wrist watches and jewelries, including tobacco and souvenir.
While we celebrate the interest shown by DUFRY to invest in our country, it is good to remind ourselves that the activities of terrorist group that unleashed terror in a shopping mall in Kenya, in 2013 is still fresh in our minds.
That unfortunate development however became a wake-up call to managers and owners of duty free shops and shopping malls globally to ensure their security personnel are on high alert to forestall a repeat of what happened in Nairobi, Kenya
Duty free shops are common features in every known international airports. It is where goods are bought at relatively cheap price, either with local or foreign currency. It is a place that afford passengers the opportunity to utilize the remaining foreign currency on them from the airport of departure without paying duties but normal fees. One wonders why those who managed the system, prior before now could not sustain the business in view of the huge market and the traffic volumes at the airports that are on a steady increase.
With the concession agreement between FAAN and DUFRY now in place, the belief is that, FAAN may have opened yet another source of revenue generation hitherto not fully tapped.
Concession agreement between FAAN and some local firms in the past had remained a turbulent issue. For example, some people hold the view that the Minister’s ordeal, Princess Stella Oduah was that she tried to streamline and fine tone the agreement between organizations like: BI-courtney Limited, the operators of Build-operate and transfer at MM2. There is also the Data Capture and Revenue collection agreement between FAAN and Maevis Limited for the collection charges on passenger handling. Another concession agreement was between FAAN and AIC limited, owned by a business man and astute politician.
The Managing director/CEO Federal Airport Authority of Nigeria {FAAN}, Mr. George Uriesi, once described the agreement with Maevis thus “ if FAAN keeps fetching water with a basket as it was doing under Maevis agreement-instead of a bucket then FAAN is going to go out of existence like Nigeria Airways, very soon”
DUFRY which operates into 45 countries across the world, investigation revealed also has 1200 shops located at various airports, seaports and other touristic locations. It means that FAAN may have made the right choice in view of its avowed commitment to be among the 50 airports groups in the world.
Again, with this development therefore, FAAN may have also aligned itself with the notable airports that can boost of well equipped duty free shops operatives, where passengers will enjoy the luxury of buying items of their choice without any form of inhibition.
This marriage between FAAN and DUFRY no doubt is coming at a time the aviation industry is witnessing reasonable measure of unprecedented improvement on both infrastructure and human capital development.
The General Manager, Public Affairs, Honourable Yakubu Dati pointed that, the visionary leadership of the management team of FAAN, under Mr. George Uriesi accounts for the achievements of the authority. He pointed that, the choice of Dufry to manage the two Duty-free shops at prime locations:- Murtala Mohammed Airport, Lagos and Nnamdi Azikwe International Airport, Abuja, was informed by the determination of the present administration, to encourage and attract investments opportunities into the country.
The Airport is the first contact to first time visitors into the country. Our major concern in FAAN as an establishment of government is to ensure that our airports are given full dose of attention that would enhance its viability in every facet.
The coming of DUFRY to manage our retail shops is of course due to what we have on ground already in terms of facilities and Aesthetics.
Nigeria remains and emerging market in Africa, and the whole world is interested to do business with us. FAAN will continue to strive harder since we are the first point of contact to those coming into the country.
With the coming of a reputable global retailer operatives, at our major gateways, FAAN may have positioned itself in the eyes of local and international investors, given the massive transformation criss-crossing in the Nigeria aviation industry, which FAAN is the Landlord.
By: Cosmas Okereafor
