Nigeria's Minister of Aviation and Aerospace Development, Festus Keyamo, has disclosed that the removal of fuel subsidy has enabled the government to increase investment in critical aviation infrastructure. Speaking at the 67th anniversary of Aero Contractors Airline in Lagos, Keyamo stated that about $500m has been raised for the reconstruction of the Lagos airport and other aviation infrastructure within two years.
According to Keyamo, the funds were not raised through borrowing but were made possible by improvements in the country's liquidity and foreign reserves. He mentioned that the country's foreign reserves have risen from $3bn to $56bn, making it an attractive destination for investors. This, he believes, is a result of the government's efforts to create a stable macroeconomic environment.
Keyamo's remarks come amid debate over the economic consequences of the removal of fuel subsidy, particularly its impact on household incomes and the rising cost of food, transportation, and other essential goods. Critics have questioned the relevance of stronger foreign reserves to Nigerians facing economic hardship. However, Keyamo argued that macroeconomic stability is crucial to attracting foreign investment required to create jobs and develop infrastructure.
The minister stressed that employment cannot be created simply through government pronouncements, but rather through investment and infrastructure development. He cited the Lagos airport project as part of a broader effort to upgrade Nigeria's aviation infrastructure and position the sector to support economic growth. The project aims to improve the airport's facilities and increase its capacity to handle more passengers and cargo.
Keyamo also disclosed that President Bola Tinubu has approved the return of the China Civil Engineering Construction Corporation to the Abuja airport project. The corporation will construct the long-delayed second runway at the Nnamdi Azikiwe International Airport. The project has been stalled for years due to disagreements over its cost and funding, with the estimated cost initially put at N45bn.
The minister recalled the controversy surrounding the project, stating that the National Assembly had raised concerns over the cost. He noted that 15 years later, the project now costs nearly ₦500bn. Keyamo emphasized the link between investment and employment, stating that attracting capital, developing infrastructure, and creating an environment in which investors have confidence are essential for job creation.
Keyamo's comments reflect the government's efforts to promote investment in the aviation sector and create jobs. The minister's assertion that jobs do not fall from heaven but come as a result of infrastructure development or investments underscores the need for sustainable economic growth. The government's aviation agenda extends beyond Lagos, with plans to upgrade other airports and improve the sector's overall performance.
Key points
- The Nigerian government has raised $500m for the reconstruction of the Lagos airport through improved liquidity and foreign reserves.
- The removal of fuel subsidy has enabled the government to increase investment in critical aviation infrastructure.
- The government aims to attract foreign investment to create jobs and develop infrastructure.
