Minister of Aviation and Aerospace Development, Festus Keyamo, has revealed that the $500m earmarked for the reconstruction of the Murtala Muhammed International Airport (MMIA) old terminal came from proceeds from the oil subsidy removal. According to Keyamo, with the removal of the subsidy, liquidity in foreign reserves rose, enabling President Bola Tinubu to raise such an amount in less than two years. This development has created room for increased investment and infrastructure development in the aviation sector.
Keyamo explained that Nigeria's oil earnings were largely consumed by petrol subsidies, while foreign exchange interventions also affected the country's ability to fund major projects. The years of subsidy regimes drained government resources, leaving critical infrastructure across the country in poor condition. The minister stated that the Federal Government's decision to remove fuel and foreign exchange subsidies has created an opportunity for investment in infrastructure.
The minister disclosed that the government has mobilized funds for major aviation projects, including the ongoing reconstruction of Murtala Muhammed International Airport, Lagos, as well as runway rehabilitation projects in Kano, Port Harcourt, and Akure. He noted that the Lagos airport reconstruction alone has created employment opportunities for thousands of Nigerians involved in construction and related services.
Keyamo stressed that sustainable economic growth requires investment in infrastructure, adding that job creation comes through projects and private sector expansion. He highlighted measures aimed at strengthening local airlines, including Nigeria's implementation of the Cape Town Convention and the establishment of the International Registry system, which would improve airlines' access to aircraft leasing.
The minister also disclosed plans for improved airport connectivity, including the proposed extension of the Lagos Red Line rail system to link Ikeja, the General Aviation Terminal, and the new international terminal at the Murtala Muhammed Airport. He said the Federal Government's Renewed Hope Agenda for aviation is anchored on infrastructure development, supportive policies, and human capacity building, with the goal of positioning Nigeria as a major aviation hub.
Aero Contractors' Managing Director, Capt. Ado Sanusi, called for the extension of President Bola Ahmed Tinubu's Renewed Hope Agenda to the aviation sector, saying a strategic policy framework is needed to position air transport as a catalyst for economic growth, tourism, trade, job creation, and foreign investment. Sanusi described Aero Contractors' survival over six decades as a symbol of resilience in an industry where many airlines have collapsed.
Capt. Sanusi appealed that the airline be recognized as a National Treasure, protected, and positioned as such, to serve this nation for the next sixty-seven years, and beyond. He recalled the airline's achievements, including completing Nigeria's first indigenous C-check on a Boeing 737 in 2018, and upgrading its Maintenance and Repair Overhaul (MRO) to state-of-the-art smart tools.
Key points
- The $500m fund for the Lagos airport reconstruction came from proceeds of the oil subsidy removal.
- The reconstruction of the Lagos airport has created thousands of employment opportunities.
- The Federal Government's Renewed Hope Agenda aims to position Nigeria as a major aviation hub through infrastructure development and supportive policies.
