By Seun Ibiyemi
The Federal Government has raised about $500 million to rebuild the Lagos airport and fund other critical aviation infrastructure, with Aviation and Aerospace Development Minister, Festus Keyamo, attributing the investment to improved liquidity and foreign exchange reserves following the removal of fuel subsidy.
Keyamo disclosed this on Monday in Lagos while speaking at the 67th anniversary of Aero Contractors, where he outlined the aviation sector’s progress under President Bola Tinubu’s administration.
Responding to a question from the Managing Director of Aero Contractors on the position of aviation under the Renewed Hope Agenda, the minister said the funds deployed for critical infrastructure were not obtained through borrowing.
According to him, improved liquidity and stronger foreign reserves have helped restore investor confidence and create greater capacity for infrastructure investment.
“The President raised $500m to rebuild the Lagos airport. Not money borrowed, because we were able to do what we should do. Our liquidity rose. Our foreign reserves also rose from $3bn to $56bn now,” Keyamo said.
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He added that improved macroeconomic conditions were encouraging investors to return to Nigeria, arguing that stronger foreign reserves and economic stability were important to attracting capital for infrastructure and job creation.
Keyamo’s comments come amid continuing debate over the economic impact of the removal of petrol subsidy, particularly its effects on household purchasing power and the cost of food, transportation and other essential goods.
The minister, however, argued that the benefits of macroeconomic reforms should be assessed partly through their ability to attract investment and support long-term economic growth.
He maintained that foreign investors were more likely to commit capital to countries where economic conditions, liquidity and foreign reserves provide confidence.
“It is when foreign investors see that you are healthy, your economy is healthy, and your foreign reserves are healthy that they will come into the country. They will build infrastructure, they will bring in money, and they will bring jobs,” he said.
Keyamo also linked infrastructure development directly to employment, arguing that sustainable jobs are created through investment and the development of productive infrastructure.
“Jobs don’t fall from heaven; jobs come as a result of either the infrastructure you are building or investments. That is how jobs are created,” he said.
The minister said the Lagos airport reconstruction formed part of a broader government strategy to modernise aviation infrastructure and strengthen the sector’s contribution to economic growth.
Beyond Lagos, Keyamo disclosed that President Tinubu had approved the return of China Civil Engineering Construction Corporation (CCECC) to the Abuja airport project to construct the long-delayed second runway at the Nnamdi Azikiwe International Airport.
“The President is not only stopping at rebuilding Lagos International Airport. Mr President has also approved that CCECC go back to build the second runway in Abuja now,” he said.
Keyamo recalled that the Abuja second runway project had faced years of delays, including disagreements over its cost and funding.
He said the project had previously been estimated at about N45 billion, a figure that attracted opposition from the National Assembly at the time.
According to him, the inability to proceed with the project when its cost was lower has contributed to a significant increase in its current estimated cost.
“Fifteen years later, or maybe 20 years later, it is now costing us nearly ₦500bn,” Keyamo said.
Earlier, the Managing Director of Aero Contractors called for aviation to be placed more deliberately at the centre of Nigeria’s economic development strategy.
The airline executive said aviation remained a critical enabler of trade, tourism, employment and investment, stressing that progress recorded under the Renewed Hope Agenda in other sectors should be matched by a clear and strategic focus on the aviation industry.
The comments highlight the growing importance of aviation infrastructure to Nigeria’s wider economic agenda as the government seeks to attract investment, improve connectivity and strengthen the capacity of airports and airlines to support economic activity.
