The inability of Federal Airports Authority of Nigeria’s (FAAN) workers to join the Contributory Pension Scheme (CPS) at inception has pushed the pension liability of the agency to N250 billion.
The National President of Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) and President of Joint Aviation Trade Union’s Forum (JATUF) Ilitrus Ahmedu, who spoke to New Telegraph in Lagos yesterday, said as at four or five years ago the liability was about N150 billion when the pension industry regulator approached the agency to regularize the contributions and remittances.
According to him, “at the time it was determined, it was over N150 billion. I am talking about four or five years back. They went for some arrangements with FAAN to formalise and make certain remittances.
“I think FAAN was paying about N350 million every month. FAAN has not been able to meet up with that target.
As we speak, the liability has grown to over N200 billion. As we speak, FAAN is paying workers who are in retirement under the old scheme. That is a different scheme.”
Describing it as a bubble waiting to burst, Ahmadu described what is playing out that precedes the current administration as dangerous.
He opened up on what informed the discussion of the various unions in the aviation industry about airport concession, stressing that the entire issue of pension liability of the agency could affect the planned concession of some of the country’s choice aerodromes.
He disclosed that as for the issues directly tied to concession, there was no way an entity can be concessional with this massive liability internally.
“That is one of the things we were discussing with the former Minister of Aviation that if, as a condition, that will lighten the burden of FAAN because if you take away the major airport, then you leave FAAN with this responsibility of paying over N650 million monthly, it will not survive,” he said.
The ATSSSAN President, while speaking at the second annual strategic aviation trade unions leadership conference with the theme, “Synergy For Safety and Productivity Management Labour Collaboration”, in Lagos, equally lamented that the country was losing several billions of naira yearly because of the Bilateral Air Service Agreement (BASA) routes that are lying fallow.
