Nigerian airports battle to boost retail spend
In a bid to boost retail activities at the airports and shore up revenue base, the Federal Airports Authority of Nigeria (FAAN) is embarking on aggressive expansion of the airport facilities as well as the construction of new airports terminals to create room for more retail activities and brand owners.
This move is in line with the focus of the Federal Government in accruing revenue to the coffers of the government through non-aeronautical services rendered to other people who make use of the airports for business purposes including brands.
The government says it is seeking to enhance the key measure of retail sales per passenger, and therefore has been expanding and refurbishing shopping areas and ensuring routes to gates steer customers past – or through – as many stores and restaurants as possible.
Speaking to MARKETING EDGE, General Manager Public Affairs, FAAN, Mr. Yakubu Dati said that the aviation industry worldwide had grown beyond aeronautical revenue to non-aeronautical revenue generation, stressing that the airport is now a place where retailers and major brand owners become revenue points to themselves and the government.
Mr. Dati affirmed that FAAN had provided enabling environment for businesses to thrive as well as woo advertisers who are willing to advertise their brands and products at the various facilities provided by the government.
He disclosed that there are several facilities at the airports where advertisers could advertise their brands and they include the various terminal buildings as well as billboards within the airport environment where they are only required to pay a stipend for their advertisement.
“It will generate revenue to FAAN because in the first place, advertisers who want to operate at the airport will have to pay us some stipends to be able to use our facilities, so that will create an opportunity for them to also advertise their brands and reach out to their preferred customers. So, that is a major non-aeronautical revenue point that will help us raise funds to be able to run the airport effectively” he said.
The FAAN GM stressed further that efforts were already on top gear to totally turn the aviation industry into a money spinning point to the government not only through the aeronautic services but other areas like branding and product sales.
“So that is why we are also working on creating a peaceful environment to encourage companies and organizations to take advantage of the captive environment which the airport provide to be able to reach their preferred customers and clients as well,” Dati said.
Mr. Dati added that the government was even reaching out to more brand owners and manufacturers of goods and services to come to the airport stressing that such plans were captured in the aerotopolis project which was meant to create a mega city in the airport environment which brands could leverage on to connect with their consumers and clients.
An aerotropolis is a metropolitan sub-region where the layout, infrastructure, and economy are centered on an airport which serves as a multimodal “airport city” commercial core. It is similar in form to a traditional metropolis, which contains a central city commercial core and commuter-linked suburbs.