The Federal Government has lost a staggering N10 billion in revenue due to the practice of giving complimentary airport e-tags to Very Important Persons.
According to The PUNCH, the Minister of Aviation and Aerospace Development, Festus Keyamo revealed this during a press briefing at the State House on Tuesday, following a two-day Federal Executive Council meeting.
Keyamo lamented that 82% of the e-tags, equivalent to N10 billion, are given free of charge to VIPs, resulting in a significant loss for the ministry.
He emphasized that this exemption policy has led to the loss of billions of naira annually, hindering the improvement of airport infrastructure.
He stated, “Let me give you the shocking statistics. The negative figure that we get at the end of the day from the complimentary e-tags is 82 per cent, in the negative.
“In other words, where we are supposed to have a 100 per cent contract on the e-costs from these e-tags that we print, it is only 18 per cent that we now end up selling. That is how bad it is. 18 per cent and 82 per cent of these e-tags are given out free of charge to VIPs. So, imagine the loss in my sector, and I ask myself,’Which other sector will I go to that they give me anything free?’
“Is it because I’m a VIP that you say that in FCT, I should not pay land charges that you waive it for me? I pay for that sector. I pay for power. Yes, I pay for everything. So, why would anybody now come to my own sector and want to get free passage? Not possible. That is how bad it is.”
He added that free e-tags to the VIPs had in the past led to the loss of billions of naira.
“So this has led in the past to loss of billions of naira, not millions, annually. Yet, our airport infrastructure, you know, is decaying. I am helpless. I’m looking for concessionaires. I’m looking for help with decaying infrastructure.
“They will be the first to cry out, these same VIPs – ‘why are the toilets like this? Why are your toilets smelling? Why can’t you do this?’ They are the same people, but they don’t pay for the services. So, if we want improved infrastructure at the airport, we must pay for services,” he said.
The minister cited an example of a particular airport gate, where the ministry should earn N260 million monthly but instead receives less than N100 million due to exemptions.