Nigeria: Fuel Subsidy Removal Enabled Tinubu's Aviation Infrastructure Investments - Keyamo

What the report says

Nigeria’s aviation minister, Festus Keyamo, said savings from the removal of fuel subsidies are being redirected into airport upgrades and new transport links under President Bola Tinubu’s government. Speaking at Aero Contractors’ 67th anniversary event at Lagos airport, he said major projects include more than N500 billion for a new international terminal at Murtala Muhammed International Airport in Lagos and about N400 billion for a second runway at Nnamdi Azikiwe International Airport in Abuja.

Keyamo said the Abuja runway plan was delayed for years, which he argued helped drive up the final cost. He also said the administration is planning rail connections to the Lagos airport, including an extension of the Red Line network toward the terminal area, as part of a wider push to improve multimodal transport. He linked these projects to broader economic reforms, saying higher foreign reserves and new funding capacity have made large infrastructure spending more feasible.

The event also focused on Aero Contractors’ long survival in a difficult sector. Managing Director Ado Sanusi described the airline’s history of financial strain and operational setbacks, while praising staff resilience. AMCON, which took a controlling stake in the carrier in 2016, said its intervention has started to produce positive results. The remarks place aviation infrastructure within Nigeria’s broader debate over subsidy reform, public investment, and the future competitiveness of local airlines.