The Federal Government is preparing to end decades of subsidies on non-profitable airports as part of a sweeping aviation reform agenda aimed at boosting efficiency, growing revenues and positioning Nigeria as a regional aviation hub.
Festus Keyamo, Minister of Aviation and Aerospace Development, announced the plan during a virtual meeting hosted by the National Orientation Agency (NOA) on the government’s Roadmap for Sustainable Air Transport.
Keyamo said most federal airports run at a loss, consuming billions monthly on diesel, maintenance and operations while generating minimal traffic and weak non-aeronautical revenue streams. Lagos alone accounts for about 63 per cent of nationwide passenger traffic and revenues, he noted, while many smaller airports barely record one flight a day and struggle to maintain basic facilities.
This imbalance, he said, forces the government to recycle revenues from Lagos, Abuja and Kano to keep smaller airports afloat, an approach that is no longer sustainable.
Airport Concessions to Drive Aerotropolis Development
Following President Bola Tinubu’s directive, the ministry will concession all non-profitable airports to private investors who will transform them into Aerotropolis hubs featuring hotels, shopping centres, conference facilities and other revenue-generating infrastructure.
“The government does not have the resources or structure to build these facilities,” Keyamo said. “All smaller airports are open for concession so they can raise their own revenue and support the Federal Government.”
Enugu Airport has already been concessioned, while Port Harcourt Airport is in its final approval stage. More proposals are under review.
Nigeria’s Leasing Compliance Score Jumps
Keyamo also revealed that Nigeria’s global compliance under the Cape Town Convention has risen from 49.9 per cent to 75.5 per cent, the highest in Africa. This improvement, driven by legal and regulatory reforms, has restored confidence among foreign aircraft lessors and led to Nigeria’s first dry lease in more than 15 years.
Boosting Local Airlines for International Competition
A major pillar of the reforms is helping Nigerian airlines compete on international routes currently dominated by foreign carriers. Keyamo said many local airlines have approved route rights but lack the aircraft capacity to reciprocate flights to the UK, US, France, Canada, Germany and others.
“That is why we are helping them access more aircraft through leasing reforms,” he said. “Opening competition on major routes is how we will lower airfares and strengthen local operators.”
He cited the progress of Air Peace, which now flies daily to Gatwick and Heathrow from both Lagos and Abuja, following extensive negotiations with UK authorities.
Strengthening Safety and Regulation
Keyamo added that Nigeria is working with ICAO to create regulations for safely integrating unmanned aircraft systems into national airspace.
He said all ongoing reforms, spanning safety, infrastructure and airline operations, are designed to build a reliable, modern and competitive aviation sector that supports both travellers and the broader economy.
