In April 2021, Anambrarians were excited about the opening of Umueri Airport.

According to the Governor, His Excellency, Willie Obiano, the Airport was built in fulfilment of his campaign promise during the 2017 elections. He further noted that the $2bn cost of the project was financed by Elite International Investments (75%), Orient Petroleum (10%), and Anambra State Government (5%).

First of all, I would like to say kudos to His Excellency for pushing this vision and not tying up State funds on a single project.
But beyond the buzz, I am curious: how did the major financier assess the project as being financially viable?

In Nigeria, having an airport within a state is considered a prestige, hence, the Governor could have tapped into this psychological mechanism to secure public acceptance of this project.

Currently, Anambra is served by three adjourning airports; Enugu International Airport, Sam Mbakwe Cargo Airport, Owerri, and Asaba Airport, the latter being the closest to Onitsha, the eastern commercial capital.

The new Anambra Airport has been designated a cargo airport. This is to serve the importation needs of Onitsha.
I presume that the project assessors would have forecast the expected imports into the city for the next fifteen years, the assumptions being that Nigeria would remain largely import dependent for a long time to come due to lack of industrialization policies. This assumption cannot be faulted.

Again, I am curious: did they take into cognizance the subset of this import that are air-freighted?
If one considered the imports into Anambra, one would notice that they are heavy goods. Heavy goods are mostly shipped rather than air freighted, to achieve cost savings. It can be argued that less than 10% of the imports into this region are air-freighted. This is evidenced by the traffic witnessed in Apapa port versus that in the cargo wing of Murtala Mohammed Airport Terminal II.

The next question is, which airline would fly the Anambra route—and how often?”
Before an airline takes a route, it would have to assess the economic viability of that route. Most imports into Anambra come from China. Will the airline that would do this long-haul flight charge competitive prices that would convince an importer to subscribe to them rather than continue with shipping?

I am predicting that such airline could be doing one flight in three or four weeks.

The income from managing the airport, which would offset Elite International Investments’ loan contribution would be subject to the flight traffic at the airport.

I am not unmindful that income would also be earned from local airlines and private jets that would be nesting at this airport, but we have to ask, how many airlines would sign up for this? Consider that Asaba Airport is closer to Onitsha than Umueri.

Now, I am left to ponder: over how many years would the investment break even, not in nominal value but in present value (i.e., taking cognizance of the time value of money)?

Based on above analysis, I am doubtful whether the airport project is economically sensible or is simply a political acrobatic

Post script:
FAAN, the agency managing 20 airports in Nigeria had a revenue of NGN30bn for the first 9 months of 2020. See here: https://punchng.com/faan-generated-n30bn-in-nine-months. This is approximately NGN3.3bn per month and NGN166m per airport. In a year, an airport is estimated to generate approximately NGN2bn.

Elite Investment financed 75% of the project with $1.5bn (75%*$2bn). This translates to NGN600bn (at exchange rate of NGN400 per $1). So, in nominal value, Elite Investment would recoup their investment in 300 years (NGN600bn/N2bn). This value does not take into cognizance operations cost and the time value of money.
Perhaps, there is something Elite saw that I might not be seeing, I may need new eye glasses to look at this matter again.

People have still not stopped crying about this airport?

Una wailing is still coming, by the time we start getting a hundred planes landing and taking off daily, suicides will abound for haters.

Taking analgesic for another man's headache is uncalled for.

Due to constitutional exclusive/concurrent listing, every non-federal airport in Nigeria is initially built as cargo airport and later used for passenger operation. So, Anambra Airport will offer comprehensive aviation services.

Airport business goes beyond aircract landing fees. There are many commercial opportunities around any airport ranging from hotel, car-park, shopping mall, conference centre, aviation training and simulator centre, etc

We know their plan

IgweOfNnewi:
According to the chairman of Nigerians in Diaspora Commission (NIDCOM) out of the 21 Nigerian drug peddlers on death roll, 20 of them were from Anambra state, which show that 95.3% of drug traffickers are from Anambra, according to the chairman, there is possibility that over 80% of Anambra state are potential drug traffickers if the opportunities are presented, now the opportunity is here, Iet now imagine police, custom officers, airport staff members are mostly from Anambra, there is no more restriction and potential to develop the world. From Malaysia to Italy, India, Pakistan, Lebanon, Russian, Burundi.

Lol. Pains everywhere

There's no way in the world that cement warehouse in the middle of a thick forest you call airport is worth $2 billion USD or cost of Burj Khalifa world tallest building

I have a complete unused 6kg gas cylinder for sale at Ikorodu, it is urgent- 7,500, it is sold for 10,500 in the market.
Collection point Ikorodu garrage
08120071709.

iammo:
There's no way in the world that cement warehouse in the middle of a thick forest you call airport is worth $2 billion USD or cost of Burj Khalifa world tallest building

What do you even know?

Dry your eyes, It's not the end of the world.

So private investors own 95% of the airport?
That's interesting... But 2b$ come on!!!

SLAP44:


What do you even know?

Dry your eyes, It's not the end of the world.

Am happy that Anambra people can now get to see an airport live and direct after 60 years of independence

It's never too late for villagers to see a plane fly in 2021



.

1 2b $ very ridiculous can we compare this warehouse with imo airport.

Ezehrobinson:
[s]In April 2021, Anambrarians were excited about the opening of Umueri Airport.

According to the Governor, His Excellency, Willie Obiano, the Airport was built in fulfilment of his campaign promise during the 2017 elections. He further noted that the $2bn cost of the project was financed by Elite International Investments (75%), Orient Petroleum (10%), and Anambra State Government (5%).

First of all, I would like to say kudos to His Excellency for pushing this vision and not tying up State funds on a single project.
But beyond the buzz, I am curious: how did the major financier assess the project as being financially viable?

In Nigeria, having an airport within a state is considered a prestige, hence, the Governor could have tapped into this psychological mechanism to secure public acceptance of this project.

Currently, Anambra is served by three adjourning airports; Enugu International Airport, Sam Mbakwe Cargo Airport, Owerri, and Asaba Airport, the latter being the closest to Onitsha, the eastern commercial capital.

The new Anambra Airport has been designated a cargo airport. This is to serve the importation needs of Onitsha.
I presume that the project assessors would have forecast the expected imports into the city for the next fifteen years, the assumptions being that Nigeria would remain largely import dependent for a long time to come due to lack of industrialization policies. This assumption cannot be faulted.

Again, I am curious: did they take into cognizance the subset of this import that are air-freighted?
If one considered the imports into Anambra, one would notice that they are heavy goods. Heavy goods are mostly shipped rather than air freighted, to achieve cost savings. It can be argued that less than 10% of the imports into this region are air-freighted. This is evidenced by the traffic witnessed in Apapa port versus that in the cargo wing of Murtala Mohammed Airport Terminal II.

The next question is, which airline would fly the Anambra route—and how often?”
Before an airline takes a route, it would have to assess the economic viability of that route. Most imports into Anambra come from China. Will the airline that would do this long-haul flight charge competitive prices that would convince an importer to subscribe to them rather than continue with shipping?

I am predicting that such airline could be doing one flight in three or four weeks.

The income from managing the airport, which would offset Elite International Investments’ loan contribution would be subject to the flight traffic at the airport.

I am not unmindful that income would also be earned from local airlines and private jets that would be nesting at this airport, but we have to ask, how many airlines would sign up for this? Consider that Asaba Airport is closer to Onitsha than Umueri.

Now, I am left to ponder: over how many years would the investment break even, not in nominal value but in present value (i.e., taking cognizance of the time value of money)?

Based on above analysis, I am doubtful whether the airport project is economically sensible or is simply a political acrobatic

Post script:
FAAN, the agency managing 20 airports in Nigeria had a revenue of NGN30bn for the first 9 months of 2020. See here: https://punchng.com/faan-generated-n30bn-in-nine-months. This is approximately NGN3.3bn per month and NGN166m per airport. In a year, an airport is estimated to generate approximately NGN2bn.

Elite Investment financed 75% of the project with $1.5bn (75%*$2bn). This translates to NGN600bn (at exchange rate of NGN400 per $1). So, in nominal value, Elite Investment would recoup their investment in 300 years (NGN600bn/N2bn). This value does not take into cognizance operations cost and the time value of money.
Perhaps, there is something Elite saw that I might not be seeing, I may need new eye glasses to look at this matter again.[[/s]

Nobody is responsible for the uselessness of Enugu airport and stop reminding ndi Anambra that they are been served by 3 points.

Meanwhile Anambra airport is Cargo and Parsenggers airport


Anambra now have airport to serve their purposes. let the ones in Enugu Serve Enugu people

Let the one in Owerri serve Imo people and let the one in Asaba serve Delta people.... Anambra say they no do again...na by force to remind them of surrounding airport...

Anambra is not responsible for the uselessness of Enugu airport.


Ndi ala..

Resurrection212:
1 2b $ very ridiculous can we compare this warehouse with imo airport.

no we can't but osun airport is the 8th wonder of the world

Juliusmalema:



Nobody is responsible for the uselessness of Enugu airport and stop reminding ndi Anambra that they are been served by 3 points.

Meanwhile Anambra airport is Cargo and Parsenggers airport


Anambra now have airport to serve their purposes. let the ones in Enugu Serve Enugu people

Let the one in Owerri serve Imo people and let the one in Asaba serve Delta people.... Anambra say they no do again...na by force to remind them of surrounding airport...

Anambra is not responsible for the uselessness of Enugu airport.


Ndi ala..

And another fulani bigot jumps in to try and knock igbo heads together

If only you know how idiotic you sound, but you won't know. Mad people don't actually know they are mad.

Airport or cement depot, imagine what these pigs are celebrating, these people have really suffered
ooh
Spits on flatty head apes

$2b? That is a terrible lie. That cement warehouse and garage? Fraudsters everywhere.