The Nigerian aviation industry is set to record a huge lost in investment following the two weeks relocation order issued to the Accident Investigation Bureau – Nigeria (AIB-N) and other companies at the Murtala Muhammed Airport (MMA), Lagos by the Federal Airports Authority of Nigeria (FAAN).

Apart from AIB-N, other private companies like Dominion, Evergreen Apple Nigeria, Caverton and ExecuJet hangars were also issued the same two weeks ultimatum to relocate their offices from their present locations.

Besides, it was learnt that some office complex of the Nigerian Airspace Management Agency (NAMA), the Federal Road Service Corps (FRSC) and the towing companies close to the AIB-N regional headquarters in Lagos may be affected by this order.

FAAN also confirmed the relocation order given to the agencies and other organisations affected at the airport, but said there was no timeframe for their eviction.

The agency also insisted that it would not pay the affected companies any form of compensation; rather, it said it would provide them another land to re-construct their offices.

If the demolition order is effected, no fewer than N20 billion investments by AIB-N, Caverton Helicopters, Dominion, Evergreen Apple Nigeria, ExecuJet hangars and others may be affected.

For instance the regional headquarters of AIB-N, which used to be its headquarters until mid-2020 when Sen. Hadi Sirika, the Minister of Aviation compelled the bureau and other sister agencies to relocate their headquarters to Abuja, houses its office complex, Command & Control Centre, office of investigators and Information Communication Technology (ICT) department.

Others are Training Centre, Mini Flight Safety Laboratory, which is used for downloading of flight recorders otherwise known as black boxes and investigators’ stores among others.

Apart from the cost of the land, our correspondent gathered that AIB-N’s facilities alone at the Lagos office is worth over N5 billion.

Most of the facilities at the AIB-N’s office in Lagos were installed less than four years ago by the current management led by Engr. Akin Olateru, the Commissioner, AIB-N.

Besides, unverified report claimed that FAAN may have planned to handover the AIB office in Lagos to another private firm that may be affected by the demolition of order.

Also, Caverton Helicopters, Evergreen Apple Nigeria, Dominion and ExecuJet hangars, which were affected by the two weeks ultimatum, have total investments worth over N15 billion in construction of offices, installation of facilities and acquisition of state-of-the-art equipment for their services.

However, this ultimatum has caused palpable fear among the organisations and workers of the affected agencies and companies and there are indications that the companies may challenge their impending eviction in the court of law.

A source close to one of the two towing companies affected by the relocation order stated that the letter was signed by Capt. Rabiu Yadudu and delivered to the company on Thursday.

The reason for the evacuation and subsequent demolition of the offices within the airport, it was learnt may not be unconnected with the ongoing construction of the Chinese terminal.

It was gathered that FAAN had planned to use the affected buildings and offices for apron extension of the new terminal, but the evacuation order may not go down well with the affected agencies and companies, especially the private hangars at the terminal.

FAAN had previously argued that AIB-N and other companies were obstructing further expansion of the new terminal, but stakeholders have always argued that the new terminal was wrongly placed, while the owners of the structures received valid and approved papers from the appropriate authorities before constructing their offices at the present locations.

Mrs. Henrietta Yakubu, the General Manager, Corporate Communications, FAAN, confirmed the relocation order issued to the companies to our correspondent on phone on Saturday.

Yakubu explained that FAAN would give the affected organisations a new land within the airport environment, stressing that the companies were on the path of the new terminal.

She, however, debunked the claim that FAAN issued them two weeks to relocate, but assured that the new terminal would be open very soon.

She said: “There is no timeframe on their relocation, but they have been told to make plans to relocate. You know they can’t relocate within two weeks. The new terminal will definitely be opened to the public very soon and it will be connected to the old terminal.”

The relocation order is coming barely a week after the National Assembly joint Aviation Committee on Aviation, warned FAAN against the demolition of the private hangars and other companies at the Lagos Airport, saying that it would cost the country a huge amount of money to execute.

Sen. Smart Adeyemi in Lagos had asked Yadudu to submit the cost of demolition and compensation due to the owners of the hangars to the joint committee for consideration before going ahead with the plan.

Adeyemi, the Chairman, Senate Committee on Aviation had regretted that the obstruction was not taken note of during the initial construction of the new terminal.

Adeyemi insisted that it was wrong for investors to lose their investments due to the laxity of government.

He had said: “We are the representatives of the people and we must be sure that the resources of the country are not unduly wasted. We must weigh the options and if the amount to be paid out as compensation does not make sound economic judgment we will not allow it.”

The new Lagos terminal, which is being constructed by the Chinese construction company, China Civil Engineering Construction Corporation (CCECC), has suffered numerous commissioning postponements in the past five years.

Just in 2021, the contractors had abandoned the terminal project midway due to an alleged huge debt owed them.

Apart from the debt owed the contractor by the Federal Government, the planned concession of Lagos Airport by Sirika also contributed to the delay in completing and commissioning of the project.

A source close to the construction company who didn’t want his name in print, confided in our correspondent recently that the plan to include the Lagos airport among the four airports slated for concession by the government was a source of worry to the company.

The company it was learnt is confused on how to recoup its investment once the terminal was concessioned as arranged by the government.

It was further learnt that the company had sought a meeting with Sirika to clarify the blur areas in the agreement it entered with the government in 2013 for the construction of four airports, especially on the recoup of its investment in the terminal.

CCECC had commenced construction of four new terminals at Lagos, Abuja, Kano and Port Harcourt airports in 2013 with completion period fixed for 20 months.

Yuan Li, President, CCECC, had told the government during the visit of the Nigeria’s high-powered delegation to the country that the quality of the work to be done at the airports would be of the highest international standard comparable to similar projects executed by the company in other parts of the world.

The government had secured $500m loan deal from the Exim Bank of China for the projects, while additional counterpart funding of $100 million was added by the Nigerian Government.

Three of the four terminals had been completed at different periods, and put to use, but the new Lagos terminal had been delayed for several years.

The National Assembly had in July 2021, raised the alarm over the abandonment of the new terminal in Lagos, despite the project reaching over 90 per cent completion stage.