The removal of Nigeria’s petrol subsidy has helped the Federal Government improve its financial position and mobilise about $500m for major aviation infrastructure projects, the Minister of Aviation and Aerospace Development, Festus Keyamo, has said.
Keyamo disclosed this in Lagos on Monday while speaking at the 67th anniversary of Aero Contractors.
According to the minister, the funds being deployed for aviation projects were not obtained through borrowing. He attributed the increased capacity to improved liquidity and stronger foreign reserves following the government’s economic reforms.
Keyamo said the Federal Government had secured about $500m for the reconstruction of the Lagos airport, describing the project as part of efforts to modernise critical aviation infrastructure.
He said Nigeria’s foreign reserves had risen from about $3bn to $56bn, adding that the improved economic position was helping the country attract investors.
The minister argued that stronger macroeconomic conditions were necessary to bring in foreign capital, expand infrastructure and create employment opportunities.
He said job creation depended largely on investment and infrastructure development rather than government announcements alone.
Beyond the Lagos airport project, Keyamo disclosed that President Bola Tinubu had approved the return of China Civil Engineering Construction Corporation to the Abuja airport project to construct the long-delayed second runway at the Nnamdi Azikiwe International Airport.
He recalled that the Abuja runway project had previously faced opposition over its estimated N45bn cost, leading to its suspension.
According to him, delays have significantly increased the financial burden of the project, with its projected cost now approaching N500bn.
Keyamo maintained that completing major infrastructure projects was important for strengthening Nigeria’s aviation sector and supporting wider economic activity.
The minister’s comments come amid continuing debate over the impact of fuel subsidy removal on Nigerians, particularly the rise in transportation, food and other living costs.
While defending the economic reforms, Keyamo said the government needed to focus on creating conditions that would encourage investors to bring capital into the country and support infrastructure development.
Earlier, the Managing Director of Aero Contractors called for greater attention to the aviation industry, describing the sector as an important driver of trade, tourism, employment and investment.
He urged the government to place aviation more firmly within its economic development plans and ensure that progress in other sectors is matched by investment in the industry.
