The Federal Airports Authority of Nigeria (FAAN) has removed a private parking management firm from Nnamdi Azikiwe International Airport in Abuja following reports that the company imposed unauthorised N25,000 fines on motorists.
The decision follows a wave of complaints from airport users who claimed the concessionaire was charging exorbitant sums for parking violations without official approval from the authority.
According to reports from Nairametrics, FAAN intervened after it became clear that the parking company had exceeded its operational mandate and was operating a fine system that contradicted established guidelines.
FAAN officials stated that the N25,000 charge was not part of any agreed tariff and constituted an illegal levy on the public. The authority has since ordered the company to vacate the premises and cease all operations at the terminal.
The removal of the firm is part of a broader effort by the Federal Airports Authority of Nigeria to curb extortion and improve the passenger experience at the nation’s capital airport.
Parking services at Nigerian airports are typically managed through concessions. Under these agreements, private companies pay a fee to FAAN to manage the infrastructure and collect parking charges, while FAAN retains regulatory oversight to ensure fees remain fair and transparent.
Regulatory Oversight of Airport Concessions
This incident highlights the recurring tension between FAAN and its third-party concessionaires over the management of non-aeronautical revenue streams. Non-aeronautical revenue, which includes parking, retail, and advertising, is critical for the maintenance of airport infrastructure.
However, the lack of strict monitoring of these contractors has previously led to disputes over pricing and service quality. The imposition of a N25,000 fine—a sum significantly higher than standard parking penalties in most urban centres—points to a failure in the company’s compliance with its contractual obligations.
Industry analysts suggest that such scandals damage the reputation of Nigeria’s aviation sector and discourage the use of official airport facilities. When concessionaires act independently of the regulator, it creates a perception of lawlessness that can deter investors and business travellers.
FAAN has previously indicated a commitment to digitising payment systems at airports to reduce human interaction and eliminate the possibility of unauthorised charges. The transition to automated payment gateways is expected to provide a verifiable audit trail for all fees collected.
The authority is now reviewing other existing concession agreements to ensure that all service providers are adhering to the approved price lists. This review is intended to prevent similar occurrences at other international airports across the country.
The abrupt ejection of the parking firm also raises questions about the vetting process for contractors managing critical public infrastructure. Ensuring that firms have a track record of ethical operations is essential to maintaining the integrity of public-private partnerships (PPPs).
FAAN is currently determining whether to appoint a new private operator or bring the parking management back under direct internal control to ensure stricter adherence to fee schedules.
The authority has advised motorists and passengers to report any instance of overcharging or extortion to the airport security or FAAN’s customer service desks immediately.
Further details regarding the appointment of a replacement parking manager or the implementation of a new fee structure are expected to be released following a full audit of the airport’s parking operations.
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