The Minister of Aviation and Aerospace Development, Festus Keyamo, says the Federal Government’s decision to remove fuel subsidy has helped unlock about $500m for the reconstruction of the Lagos airport and other critical aviation infrastructure over the past two years.
Keyamo disclosed this on Monday in Lagos during the 67th anniversary celebration of Aero Contractors Airline, while responding to questions on the state of Nigeria’s aviation industry under the President Bola Tinubu administration’s Renewed Hope Agenda.
The minister said the funds committed to the infrastructure projects were not obtained through borrowing, but were facilitated by improvements in Nigeria’s liquidity position and foreign reserves.
He said, “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.”
According to Keyamo, the improvement in the country’s financial position has also helped restore investor confidence and encouraged more foreign investors to consider Nigeria.
“And investors are rushing into the country because they now see the country as viable,” he added.
The minister’s comments come amid ongoing debate over the economic impact of fuel subsidy removal, particularly the pressure it has placed on household incomes and the rising prices of food, transportation and other essential commodities.
Keyamo, however, argued that stronger foreign reserves and broader macroeconomic stability were important to attracting the investment needed to expand infrastructure and create employment.
Responding to criticism that improved foreign reserves offered little relief to Nigerians facing economic hardship, he said, “People say, ‘What will foreign reserves do for the economy? People are hungry.’ You know, this is the cheap talk they engage in to play on cheap sentiment.”
He maintained that the more important question was how Nigeria could create conditions capable of attracting investors with the capital required to build infrastructure and generate jobs.
“Tell me, what exactly will bring investors? What will bring jobs? Tell me,” Keyamo said.
He added that investors would be more willing to commit funds when they were confident in the strength of the Nigerian economy and its foreign reserves.
“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 defended the government’s approach to job creation, arguing that employment opportunities are largely driven by investment and infrastructure development rather than government pronouncements.
“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.
On aviation infrastructure, the minister said the reconstruction of the Lagos airport was only one part of the Federal Government’s broader plan to modernise facilities across the country.
He disclosed that President Tinubu had also approved the return of China Civil Engineering Construction Corporation to the Abuja airport project to undertake construction of 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,” Keyamo said.
The Abuja second runway project has remained stalled for several years, with disagreements over its funding and estimated cost contributing to the delay.
Keyamo recalled that the project had previously faced opposition when its estimated cost was put at about N45bn.
“The National Assembly fought that project because they said that N45bn was too much to spend on the second runway,” he said.
He explained that the resulting halt to the project prevented the government from executing it at the time, adding that the cost had since increased significantly.
“And so, the Committee on Aviation at that time all rested, an embargo was put on it. We could not raise N45bn at that time to build the second runway. Fifteen years later, or maybe 20 years later, it is now costing us nearly ₦500bn,” he said.
Keyamo reiterated that attracting capital and developing infrastructure remained central to creating sustainable employment and strengthening Nigeria’s aviation sector.
“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.
