FG raised $500 million for Lagos airport after subsidy removal, Keyamo says

The Minister of Aviation and Aerospace Management, Festus Keyamo, disclosed on Monday, October 5, 2026, at Aero Contractors’ 67th anniversary celebration in Abuja, that the Federal Government raised approximately $500 million to reconstruct the Lagos airport and other aviation infrastructure within two years without borrowing. This was made possible by the removal of fuel and foreign exchange subsidies and increased government liquidity, which freed resources previously allocated to subsidies and improved government liquidity.

Keyamo emphasized that Nigeria's past struggles in financing major airports were due to insufficient revenues committed to fuel and foreign exchange subsidies, leading to reliance on borrowing. The minister highlighted that the construction of terminals in Lagos, Abuja, Kano, and Port Harcourt was funded by Chinese loans which Nigeria is still repaying.

He also mentioned that the second runway at Nnamdi Azikiwe International Airport, Abuja, would cost around N400 billion, stressing the importance of investing in critical infrastructure when needed rather than allowing costs to escalate. The Lagos airport reconstruction project has generated employment, with over 2,000 Nigerians working daily on the project, primarily local artisans.

The Federal Executive Council approved N987 billion in August 2025 for extensive infrastructure upgrades at airports across Nigeria, forming part of the government’s broader infrastructure program for the aviation sector, financed through the Renewed Hope Infrastructure Development Fund.