The federal government has raised about $500 million for the reconstruction of the Murtala Muhammed International Airport (MMIA), Lagos, and other aviation infrastructure projects over the past two years, highlighting the growing role of government liquidity in financing critical transport assets under President Bola Tinubu’s administration.
Festus Keyamo, minister of aviation and aerospace development, disclosed this in Lagos at the 67th anniversary of Aero Contractors, saying the funds were raised without borrowing following improvements in government liquidity and foreign reserves after the removal of the petrol subsidy and liberalisation of the foreign exchange market.
The funding, according to the minister, has strengthened the government’s capacity to finance airport infrastructure while creating conditions for additional investment in the aviation sector.
However, the scale of the funding announcement comes against the backdrop of rising construction costs and long-standing infrastructure deficits, with the minister citing the Abuja airport’s second runway as an example of the financial consequences of project delays.
Keyamo said President Tinubu had approved the return of China Civil Engineering Construction Corporation (CCECC) to the long-delayed second runway project at the Nnamdi Azikiwe International Airport, Abuja. The project, initially estimated at about ₦45 billion, now costs nearly ₦500 billion, according to the minister.
The Lagos airport reconstruction forms part of a government programme to address infrastructure gaps across the aviation sector.
Keyamo attributed the administration’s ability to finance the projects to improved liquidity following major economic reforms, arguing that the removal of the petrol subsidy and foreign exchange market changes had created additional fiscal room for infrastructure spending.
Keyamo attributed the administration’s ability to finance the projects to improved liquidity following major economic reforms, arguing that the removal of the petrol subsidy and foreign exchange market changes had created additional fiscal room for infrastructure spending.
Keyamo said more than 2,000 Nigerians were working daily on the Lagos airport reconstruction, presenting the project as both an infrastructure investment and a source of employment.
The minister also said the government’s infrastructure programme was intended to attract additional private investment into the sector.
