Recall that the National Union of Air Transport Employees (NUATE) had raised the alarm over the alleged mismanagement of Aero Contractors by the Asset Management Corporation of Nigeria (AMCON).

The airline, however, faulted the claim, denying AMCON’s involvement in its operations.

It would be recalled that AMCON formally took over Aero Contractors in 2016, following the dissolution of its management.

NUATE, in a circular signed by its President, Ben Nnabue, warned that the airline’s operations and growth are being undermined.

The union accused AMCON of refusing to provide the necessary funding required to sustain the airline’s operations, a development it said had negatively affected Aero Contractors’ stability in an already challenging aviation environment.

The airline emphasised that it remains under receivership, a standard global practice applied to companies undergoing financial restructuring, and that its operations are being managed professionally in line with established corporate governance frameworks.

Receivership Status Explained

According to the statement, Aero Contractors’ current receivership status reflects a restructuring phase aimed at stabilising the business and ensuring long-term sustainability.

“Globally, companies are placed under receivership as part of structured efforts to restore financial health. This does not diminish the operational integrity of the organisation,” the statement noted.

Leadership and Operational Control

The airline reaffirmed that its day-to-day operations are under the leadership of its Managing Director, Capt. Ado Sanusi, a seasoned aviation professional with extensive industry experience.

The company described Capt. Sanusi as a “thorough-bred professional” who has continued to demonstrate strong leadership in steering the airline through its current phase, maintaining operational efficiency and service delivery.

Clarifying AMCON’s Role

Addressing concerns about external control, Aero Contractors stated that it is inaccurate to suggest that AMCON is directly running the airline.

“It is misleading to claim that AMCON is managing Aero Contractors. Such assertions do not reflect the governance structure in place,” the statement said.

The airline explained that AMCON, as a stakeholder, reserves the right to second personnel to entities where it has financial interest, a practice that is consistent with global restructuring and recovery frameworks.

This approach, the statement added, applies not only to Aero Contractors but also to other entities within AMCON’s portfolio.

Commitment to Stability and Growth

Aero Contractors reiterated its commitment to maintaining operational stability, strengthening service delivery, and advancing its long-term recovery strategy.

The airline also called on stakeholders and the public to rely on verified information and avoid misinformation that could undermine confidence in the aviation sector.

“We remain focused on delivering safe, reliable, and efficient services while progressing steadily through our restructuring process,” the statement concluded.

Mrs. Olubunmi Kuku, the managing director/chief executive of FAAN, gave the confirmation during a consultative meeting with the National Union of Air Transport Employees (NUATE).

The move aligns with a Federal Government mandate to modernize public finance management and eliminate leakages in revenue collection.

Federal Mandate Drives Reform

The transition is rooted in a Treasury Circular dated November 24, 2025, issued by the Office of the Accountant General of the Federation.

The directive, signed by Shamseldeen Ogunjimi, mandated all Ministries, Departments, and Agencies (MDAs) to cease physical cash collections following approval from the Federal Executive Council.

Mrs. Kuku emphasized that the policy is a non-negotiable step toward global best practices in aviation management.

“There is no going back on this decision,” the MD/CE stated. “The cashless initiative aligns FAAN with national financial management reforms while positioning Nigeria’s airports for greater operational integrity and stronger revenue assurance.”

Addressing the Paystack Third-Party Concerns

During the engagement, the MD/CE addressed specific concerns regarding the use of Paystack as a payment partner.

She clarified that the platform functions strictly as a gateway and does not hold government funds.

Payment Flow: All transactions are processed via Point of Sale (POS) terminals.

Direct Remittance: Funds move directly from the terminal into designated Federal Government accounts, not into third-party accounts.

Transparency: The system is designed to provide full transaction traceability and reduce human-led revenue leakages.

Stakeholder Alignment

The meeting with NUATE served to douse tensions and provide clarity on the operational framework of the new system.

According to FAAN, the union expressed satisfaction with the practical implementation strategy and the measures put in place to ensure a seamless transition by the end-of-month deadline.

The authority maintains that the reform will lead to:

• Faster service delivery at airport touchpoints.
• Enhanced accountability and public confidence in airport operations.
• Inclusive consultation with partners, concessionaires, and service providers.

This move marks a significant milestone in the modernization of Nigeria’s aviation value chain. By eliminating cash, FAAN is betting on digital infrastructure to boost its bottom line and satisfy the federal government’s drive for transparency in the Orange Economy and transportation sectors.

As the February 28 deadline approaches, passengers and vendors at Nigerian airports must prepare for a fully digital payment environment, as FAAN pivots toward a more audited and efficient revenue model.

Investment in Project Development

Speaking at the Biennial FAAN Joint Trade Unions Conference 2025, Mrs. Kuku urged aviation stakeholders to prioritize investment in project development, ensuring bankability and investor confidence.

She stressed the importance of market studies, feasibility assessments, and strong business cases to attract funding and drive sectoral expansion.

Cargo Operations & Investor Confidence

Mrs. Kuku highlighted the critical role of cargo operations in the future of aviation, noting that data-driven studies are essential to secure investor trust. While FAAN has established the Directorate of Cargo Development and Services, she emphasized the need for additional support and research to strengthen the sector.

Staff Welfare & Training Initiatives

Improved Working Conditions – FAAN has negotiated new conditions of service with union participation, set for submission to the Ministry of Aviation and Aerospace Development.
Expanded Training Coverage – The agency is reassessing staff training and international travel budgets to ensure inclusivity.
Healthcare Access – FAAN is exploring partnerships to enhance medical facilities for employees.
Operational Upgrades – Plans are underway to procure operational vehicles and renovate staff quarters for better living conditions.

Airport Management & Performance Metrics

Mrs. Kuku emphasized the importance of Key Performance Indicators (KPIs) to ensure efficiency and accountability among airport managers and department heads.

Union Collaboration & Industry Strategy

Expressing gratitude to aviation unions NUATE, ATSSSAN, and ANAP, Mrs. Kuku encouraged delegates to use the conference as a strategic platform to drive meaningful change.

She advocated for fairness in safety practices (Just Culture) and equitable shifts toward sustainable aviation (Just Transition).

“Let us work together to protect jobs, enhance conditions of service, and strengthen the sector—not through conflict, but through cooperation,” she concluded.