Home [ MAIN ] FAAN Debuts Service Level Agreement To Enforce Standards And Prompt Payment

FAAN Debuts Service Level Agreement To Enforce Standards And Prompt Payment

Airline Operators Accuse FAAN Of Flight Delays

The Federal Airports Authority of Nigeria (FAAN) has initiated a landmark move to formalize its relationship with domestic airlines through a comprehensive Service Level Agreement (SLA). In a letter dated February 6, 2026, FAAN invited the Airline Operators of Nigeria (AON) to a review meeting scheduled for Tuesday, February 10, to finalize the draft.

This marks the first time in the agency’s history that it is establishing a written, legally binding instrument to define the mutual rights, duties, and performance obligations between the airport landlord and its primary tenants.

The primary objective of the SLA is to guarantee consistent, high-quality service delivery by FAAN while ensuring the prompt fulfillment of financial obligations by the airlines. Under the terms of the draft, FAAN commits to providing safe, reliable, and efficient airport facilities in strict accordance with the standards of the International Civil Aviation Organization (ICAO).

In exchange, airlines are required to acknowledge their responsibility to adhere to airport regulations and ensure the timely remittance of all applicable charges, including landing fees, rents, and the Passenger Service Charge (PSC).

Financial accountability is a central pillar of the new agreement, which mandates that airlines remit PSC collections directly into FAAN’s designated Treasury Single Account (TSA) held with the Central Bank of Nigeria.

The document specifies that non-compliance with these payment obligations will be deemed a breach of contract, potentially resulting in enforcement actions. To support operational transparency, the agreement also requires airlines to provide accurate and consistent data, such as flight schedules and passenger manifests, to allow for better resource planning at the terminals.

The agreement is set to remain in force for an initial period of two years once signed by both parties. Industry analysts suggest that this formalization is a critical component of Managing Director Olubunmi Kuku’s broader “Go-Cashless” and infrastructure modernization agenda.

By replacing informal arrangements with a structured SLA, FAAN aims to minimize recurring disputes over service quality and debt accumulation, creating a more stable and professional business environment within the Nigerian aviation ecosystem.

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