FG Puts Aviation Infrastructure Upgrade Cost Above N1tn
The Federal Government’s ongoing renewal, rehabilitation and construction of aviation infrastructure will cost more than N1 trillion, Minister of Aviation and Aerospace Development Festus Keyamo has said.
Keyamo, who spoke at the 67th anniversary of Aero Contractors, Nigeria’s oldest airline, said President Bola Tinubu had approved the mobilisation of China Civil Engineering Construction Company to begin work on the second runway at Nnamdi Azikiwe International Airport, Abuja.
He listed a light rail line among the new projects planned by the administration. The rail line, he said, will run from the Lagos State Red Line at Ikeja Bus Stop to the international wing of Murtala Muhammed Airport. It will pass through the General Aviation Terminal and MMA2 at the local wing, with a stopover at the Air Force Base, before ending at an underground station at the new Terminal Two of MMIA in Lagos.
Keyamo described the intervention as the Renewed Hope Initiative for the aviation industry, estimated at N1 trillion and sourced from the Renewed Hope Infrastructure Fund.
He said the Tinubu administration had addressed infrastructure challenges, including the modernisation of the old MMIA terminal at a cost of N712 billion.
The Abuja airport second runway is expected to cost N400 billion, he said, noting that the project had been delayed by legislative disputes over the years. The resurfacing of the Akure Airport runway is also part of the work.
“The current administration has done much in policy by pushing for support for local airlines, which has increased their fleet, with easier access to aircraft, as well as the upgrade of airport infrastructure,” Keyamo said.
“Before now, these could not be achieved because Nigeria borrowed money to build four airport terminals in Lagos, Abuja, Port Harcourt and Kano. But all that has changed under the Tinubu administration. Following the removal of fuel subsidy, there is no more borrowing to build aviation infrastructure. The gains are now being ploughed into projects and policies that will build the economy and create jobs.
“This is the vision of Mr President under the Renewed Hope agenda for the aviation sector; it is anchored on infrastructure and policy.”
He said the major terminals began under either the Jonathan or Yar’Adua administrations and were completed under Buhari, adding that they were financed with Chinese loans. Other terminal projects, including those in Port Harcourt and Enugu, were funded through budgetary allocation and were not completed, he said.
Keyamo added: “We could not raise money to do anything in the last 50 years because there was no money. What we managed to do was borrow money from the Chinese, and we are paying it back. Why was there no money? All the money we were earning from oil was going to subsidies. Our major earnings from oil went to subsidising PMS. And not only PMS—we were also suppressing the naira.”
On the Abuja second runway, he said: “Why did we not build the second runway all along? The National Assembly halted that project because they said N45 billion was too much to build it. We could not raise N45 billion at that time. Fifteen or maybe 20 years later, it is now costing us nearly N400 billion. That is the danger of postponing the evil day.”
Keyamo praised Aero Contractors as a symbol of resilience and the Nigerian spirit. “This is the pride of Nigeria. This is not just your success. It is a story of resilience. It is a story of the Nigerian spirit. It is a story of success,” he said.
“I hoped to come here and see the CEO of every other airline seated in front, to learn from you. During your 68th anniversary, whether I am here or not, call the CEO of every other airline existing today to come and sit down. We are very proud of you. We are very proud of Aero Contractors.”