FAAN Undertakes Service Level Agreement with Airline Operators, Prompt Payment for Service Rendered

Chinedu Eze

The Federal Airports Authority of Nigeria (FAAN) will on Tuesday meet with airline operators to review Service Level Agreement it has drafted for signing by the domestic carriers.

In a letter with Ref. FAAN/LEGAL/1600/vol. 4/95 and addressed to the Chairman, Airline Operators of Nigeria (AON), dated February 6, 2026 and titled – Forwarding Draft Service Level agreement (SLA) and Invitation to Review Meeting – FAAN said the objective of the meeting was to ensure alignment and collaboration.

Details of the Service Level Agreement made available to THISDAY indicated that FAAN (the service provider) has undertaken to render services to the airlines in accordance to standard and recommended practice of the International Civil Aviation Organisation (ICAO), Airport Council International (ACI), the Nigeria Civil Aviation Authority (NCAA) and the Federal Ministry of Aviation and Aerospace Management.

The airlines are also expected to comply to the terms of the agreement, including acknowledging their responsibility in tandem with airport regulations and both parties agree to record their respective rights, duties, and obligations in a written instrument for certainty, transparency, accountability, and enforceability.

“The purpose of this Agreement is to ensure consistent qualitative Service delivery by the Service Provider and prompt fulfilment of obligations by the airline.

“This Agreement does not create a joint venture, partnership or agency relationship. It is intended to guarantee the delivery of safe, reliable, and efficient airport services and facilities to the Airline within agreed timeline; provide a legally binding document that specifies mutual responsibilities, performance levels, and remedies in case of default.

“It will protect the operational integrity, financial sustainability, and statutory obligations of Service Provider in the discharge of its mandate and ensure clarity of obligations between Service Provider and the Airline, thereby minimizing disputes and enhancing accountability,” the agency stated in the draft.

The duration will kick-off after it has been signed and it will be valid and in full force for an initial period of two years.

According to the draft, the obligation of the airlines includes prompt payment of all applicable charges, fees, levies, rents, and PSC (passenger service charge) collected on behalf of the Service Provider; and remittance of PSC into Service Provider’s designated Treasury Single Account (TSA) held with the Central Bank of Nigeria.

Other include compliance with all operational, safety, and security instructions issued by Service Provider; making available to the Service Provider accurate operational data, including flight schedules, passenger manifests, and cargo volumes, in a timely and consistent manner; not obstructing or interfering with FAAN’s statutory functions.

It stressed that “non- compliance with these obligations shall be deemed breach and may result in enforcement under Clause 10”.

This is the first time FAAN is signing a service level agreement with airline operators and those who spoke with THISDAY expressed surprise it has not happened before.

However, the operators who spoke to THISDAY confirmed the receipt of the invitation for review meeting.