AIRPORT TOUTING: FAAN to revoke licences of culpable firms

The Federal Airports Authority of Nigeria (FAAN) has issued a stern warning, threatening to revoke the operating licences of businesses whose staff are implicated in airport touting and illicit activities. This decisive stance follows internal investigations revealing that many perpetrators are not external individuals but employees of agencies and concessionaires operating within Nigerian airports. The move underscores FAAN's commitment to enhancing security, order, and passenger experience, and highlights the legal and contractual obligations of airport concessionaires and service providers to ensure their personnel adhere to regulatory standards and maintain decorum within airport premises. This development signals a potential shift towards stricter enforcement and accountability in the Nigerian aviation sector.

The Federal Airports Authority of Nigeria (FAAN) recently declared its intention to revoke the operating licences of firms found to be complicit in airport touting and other illicit activities. This significant announcement, made by FAAN's Managing Director, Mrs. Olubunmi Kuku, stems from internal investigations that revealed a disturbing trend: many individuals engaged in such nefarious acts are, in fact, staff of agencies and concessionaires operating within the nation's airports.

This threat by FAAN is not merely an administrative warning; it represents a critical juncture in the ongoing efforts to sanitise Nigerian airports and enhance the overall passenger experience. Touting, harassment, and other illicit behaviours undermine airport security, efficiency, and Nigeria's international image. The proposed revocation of licences signals a robust enforcement drive, compelling concessionaires and other airport businesses to take full responsibility for the conduct of their employees and ensure strict compliance with operational guidelines and national aviation regulations. For legal practitioners, this development necessitates a thorough review of existing concession agreements and a proactive approach to advising clients on compliance and risk mitigation.

The Federal Airports Authority of Nigeria (FAAN) is a corporate body established under the Federal Airports Authority of Nigeria Act, 1996. Its primary mandate includes developing, providing, and maintaining all necessary services and facilities for the safe, orderly, expeditious, and economic operation of air transport at airports within Nigeria. To achieve this, FAAN is empowered to enter into various agreements, including concession agreements with private entities for the provision of services and management of certain airport facilities.

The broader regulatory framework for aviation in Nigeria is governed by the Civil Aviation Act, 2022, which repealed the earlier 2006 Act, and the Nigerian Civil Aviation Regulations (NCARs), including the NCARs 2023. The Nigerian Civil Aviation Authority (NCAA) is the primary regulatory body responsible for safety and economic regulation across the industry, including aerodrome operations and aviation security. Part 17 of the NCARs, specifically addressing Aviation Security, applies to various entities, including airport operators, aerodrome tenants, and any person within the vicinity of an airport, setting standards and practices to safeguard civil aviation. Furthermore, the FAAN Act itself grants the Authority the power to make bye-laws, including those for "the arrest, investigation and prosecution of persons found loitering, wandering or touting at the airports."

While "touting" is not specifically defined within the FAAN Act, its common understanding in Nigerian legal and social contexts refers to the act of soliciting business or harassing individuals, often for illicit gain, as seen in various public spaces. The explicit mention of touting in FAAN's bye-law powers underscores its recognition as a disruptive and unlawful activity within airport environments. The current threat by FAAN to revoke licences is therefore rooted in its statutory mandate to ensure the efficient and secure operation of airports, and its authority to enforce compliance with both its own regulations and the terms of concession agreements.

FAAN's power to revoke operating licences of concessionaires and other businesses is likely derived from a combination of its enabling statute, the Federal Airports Authority of Nigeria Act, 1996, and the specific terms embedded within the concession agreements themselves. While the FAAN Act grants the Authority general powers to manage and maintain airports and ensure orderly operations, it also empowers FAAN to make bye-laws for the arrest, investigation, and prosecution of individuals involved in touting. This statutory backing provides a strong foundation for FAAN to impose conditions on businesses operating within its jurisdiction and to take punitive measures for non-compliance.

Concession agreements, by their nature, are contracts that typically include clauses outlining performance standards, compliance requirements, and conditions for termination or revocation in the event of a breach. Given the history of disputes and renegotiations surrounding airport concession agreements in Nigeria, as highlighted by past issues with entities like Bi-Courtney Aviation Services Limited (BASL), it is imperative that such agreements contain clear provisions for addressing staff misconduct and the consequences thereof. The Infrastructure Concession Regulatory Commission (Establishment, Etc.) Act, 2005, which governs public-private partnerships and concessions, also provides a framework for these arrangements.

The assertion that staff of concessionaires are involved in touting raises questions of vicarious liability and contractual responsibility. Concessionaires are generally expected to ensure their employees adhere to all airport rules, security protocols, and ethical standards. A failure to control staff behaviour, leading to illicit activities like touting, could be construed as a material breach of the concession agreement, justifying FAAN's threat of licence revocation. This aligns with the broader regulatory principle in Nigeria, where bodies like the Central Bank of Nigeria (CBN) exercise powers to revoke licences of financial institutions for failing to meet regulatory requirements or for non-compliance with operational standards.

However, any such revocation must strictly adhere to principles of due process. Concessionaires are entitled to fair hearing, notice of alleged breaches, and an opportunity to remedy the situation or present their case before a final decision is made. Arbitrary revocation could lead to protracted legal challenges and claims for damages, as seen in past concession disputes. The Civil Aviation Act, 2022, and the NCARs 2023, particularly Part 17 on Aviation Security, also impose obligations on aerodrome tenants and operators, providing additional regulatory grounds for FAAN's actions. The threat thus serves as a powerful reminder to all airport stakeholders of their obligations under both specific contractual terms and the overarching aviation regulatory framework.

FAAN's declaration to revoke licences of firms linked to airport touting marks a significant escalation in its efforts to enforce order and security within Nigerian airports. This move, driven by findings that internal staff are often the culprits, places a direct and substantial burden on concessionaires and other airport businesses to monitor and control the conduct of their employees rigorously. For legal practitioners, this necessitates an immediate and thorough review of all existing concession and operational agreements to identify clauses pertaining to staff conduct, compliance, and termination conditions.

Clients operating within Nigerian airports must be advised to implement stringent internal controls, conduct regular staff training on ethical conduct and airport regulations, and establish clear reporting mechanisms for illicit activities. Proactive engagement with FAAN and adherence to due process in addressing any allegations will be crucial. The potential for licence revocation carries severe financial and operational consequences, making compliance not just a regulatory obligation but a critical business imperative. Legal professionals should anticipate increased scrutiny from FAAN and be prepared to guide their clients through potential investigations, ensuring that all actions taken by the Authority are in strict accordance with the law and the terms of their agreements, while also advocating for fair process and transparency.