Why Nigeria must improve business climate to achieve Airport hub status, by Kuku The Managing Director of the Federal Airports Authority of Nigeria (FAAN), Olubunmi Kuku, said Nigeria must meet several economic and operational conditions beyond infrastructure development to achieve hub status for its airports. Kuku explained that improving the business environment and expanding economic activities such as trade, tourism, and investment are critical factors required to increase passenger traffic and position Nigerian airports as major transit hubs. Speaking in an interview with CNBC Television, she said ongoing rehabilitation works at the Murtala Muhammed International Airport would help advance the Federal Government’s plan to develop transit facilities for passengers. According to her, several African countries have successfully developed major aviation hubs, citing Cairo International Airport in Cairo, Addis Ababa Bole International Airport in Addis Ababa, and O. R. Tambo International Airport in Johannesburg as examples where airports function effectively as transit hubs for international passengers. She noted that these airports have evolved beyond serving as destinations for travellers, providing facilities that allow passengers to transit seamlessly between international routes without necessarily entering the host country. Kuku said Nigeria is adopting a similar model as the Federal Government intensifies efforts to upgrade airport infrastructure and improve passenger traffic. She explained that passenger traffic levels in Nigeria remain relatively low when compared with the country’s Gross Domestic Product, noting that less than two per cent of the population currently travels by air. According to her, increasing passenger traffic requires broader economic growth, improved trade activities and stronger tourism development that would attract more travellers into the country. She also stressed that achieving hub status involves more than infrastructure development, noting that enabling factors such as airline partnerships, improved bilateral air service agreements and expanded flight routes are equally important. Kuku said the current administration has made progress in increasing international routes and strengthening aviation partnerships with other countries. She added that a key challenge within Nigerian airports is the absence of dedicated transit facilities, which currently makes it difficult for passengers to transfer seamlessly between international flights. However, she noted that the ongoing rehabilitation of Murtala Muhammed International Airport includes plans to incorporate transit areas that will support the hub strategy. The FAAN boss also highlighted efforts to improve passenger experience through technology-driven airport operations, including redesigned passenger flow systems and expanded use of digital infrastructure. According to her, the authority has reviewed the entire passenger journey, from entry into the airport environment to check-in and departure, to improve efficiency and convenience. She said the new airport design integrates advanced technologies such as biometric verification systems and electronic gates for both entry and exit processes. Kuku also addressed the temporary suspension of the cashless policy at airport toll gates, noting that the decision by Bola Ahmed Tinubu allows the authority time to recalibrate the implementation process. She explained that the waiver granted by the Federal Executive Council permits a hybrid system that allows both contactless payments and cash transactions while strengthening the necessary infrastructure. According to her, the approach will enable FAAN to expand payment channels, improve toll infrastructure, and ensure a smoother transition to a fully cashless system in the future. Kuku added that the decision provides the aviation industry with additional time to pilot and refine the system while improving passenger experience and operational efficiency at Nigerian airports.