NIGERIA’S airports have been urged to reduce their heavy dependence on aeronautical charges by embracing a diversified commercial revenue model capable of transforming airport facilities into self-sustaining economic hubs.

The call comes amid growing concerns that relying primarily on aeronautical service charges is insufficient to finance the infrastructure, safety and security requirements demanded by international aviation standards.

According to transportation expert, Dr. Femi Aiyegbajeje, who spoke to the Nigerian Tribune, the Federal Airports Authority of Nigeria (FAAN) needs to diversify airport revenue streams by shifting emphasis from aeronautical income to non-aeronautical commercial activities.

Dr Aiyegbajeje, who is also a senior lecturer in the Department of Geography at the University of Lagos (UNILAG), said the strategy would strengthen the financial sustainability of the airports while positioning them as integrated commercial and economic hubs capable of attracting investments, creating jobs and enhancing passenger experience.

He said over-reliance on aeronautical revenue, derived from landing fees, passenger service charges, aircraft parking and navigation charges—makes airports vulnerable to fluctuations in air traffic and continued dependence on government funding.

“The call for the Federal Airports Authority of Nigeria (FAAN) and the Federal Government to shift emphasis from aeronautical revenue such as landing fees, passenger service charges, parking and navigation charges to non-aeronautical revenue such as retail, commercial property, advertising, hospitality, logistics, business parks, and real estate has significant implications for the holistic development of Nigeria’s airports”, Aiyegbajeje said.

He further explained that expanding non-aeronautical revenue sources through retail outlets, commercial real estate, advertising, hospitality, logistics facilities, business parks and other commercial developments would provide airports with more stable and predictable income.

The transportation expert noted that consistent commercial earnings would enable airport authorities to finance routine maintenance, infrastructure modernisation and capacity expansion without placing excessive financial pressure on airlines through higher airport charges.

He added that increased commercial investment would significantly improve passenger experience by encouraging the development of shopping malls, restaurants, lounges, airport hotels, entertainment centres, high-quality internet services and other customer-focused facilities, transforming airports into attractive destinations rather than mere transit points.

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Aiyegbajeje further observed that stronger commercial revenues could reduce the need for frequent increases in aeronautical charges, thereby lowering airline operating costs and contributing to more affordable air travel for passengers.

He said the policy would also accelerate the transformation of major airports into airport cities (aerotropolises), integrating offices, conference centres, logistics parks, cargo villages and hospitality facilities that stimulate wider economic activities beyond aviation.

According to him, the expansion of commercial activities around airports would create thousands of employment opportunities across retail, hospitality, logistics, construction, facility management and other support services.

The researcher also stated that a robust non-aeronautical revenue framework would attract greater private sector participation through concessions and Public-Private Partnerships (PPPs), reducing the financial burden on government while improving operational efficiency.

Corroborating Dr Aiyegbajeje’s position, former commandant of the Murtala Muhammed Airport (MMIA), Lagos, Captain John Ojikutu (rtd) stated that airports should emulate globally successful models such as Singapore’s Changi Airport by expanding non-aeronautical businesses, including business parks, cargo logistics centres, cold-chain facilities, airport hotels, retail complexes, conference centres and other commercial developments.

Group Captain Ojikutu stressed that facilities such as the Murtala Muhammed International Airport, Lagos, possess the market potential to develop a world-class cargo village capable of serving as a major logistics gateway for West Africa, while the Nnamdi Azikiwe International Airport, Abuja, could also leverage its strategic location to attract commercial investments.

Such investments, Ojikutu noted, would generate stable non-aviation revenue, reduce financial dependence on airlines, create employment opportunities, improve passenger experience and position airports as integrated commercial ecosystems rather than mere transit facilities.

He explained that aeronautical charges, which are internationally regulated, require substantial support from non-aeronautical earnings, which are nationally regulated, to enable airports to meet global compliance obligations.

According to him, while safety and security services funded largely through aeronautical charges must comply with mandatory international standards, commercial services represent recommended international best practices that provide the financial backbone for modern airport operations.

He observed that most leading international airports generate a significant portion of their income from non-aeronautical activities, enabling them to continuously invest in infrastructure upgrades, technology, customer experience and operational efficiency without placing excessive financial burdens on airlines.

The aviation security expert added that Nigeria already possesses the passenger market, geographical advantage and economic potential needed to replicate such success, but requires deliberate policy direction and investment to unlock the commercial value embedded within its airports.

Another aviation expert, Capt. Peter Kalu, however, believes that, expanding commercial activities around airports would not only strengthen the financial resilience of airport operators but also stimulate trade, logistics, tourism and broader economic development across.