…boost local airlines capacity for international routes
The Federal Government says it is set to end decades of financial subsidies on non-profitable airports across the country, as part of a new aviation reform roadmap aimed at improving efficiency, boosting revenues, and positioning Nigeria as a competitive aviation hub.
Festus Keyamo, Minister of Aviation and Aerospace Development, disclosed this on Tuesday during a virtual meeting hosted by the National Orientation Agency (NOA) on the Federal Government’s Roadmap for Sustainable Air Transport.
He explained that most federal airports operate at a loss, consuming billions of naira monthly in diesel, maintenance and operational expenses, despite generating very low traffic and minimal non-aeronautical revenue.
According to the minister, Lagos alone accounts for about 63% of all passenger traffic and nearly the same proportion of airport revenues nationwide, while many smaller airports record only one flight per day and struggle to maintain basic facilities such as toilets, chillers, escalators and air conditioners.
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Keyamo said this imbalance has forced the government to divert revenues generated from major gateways like Lagos, Abuja and Kano to sustain smaller airports, an unsustainable model that has stifled growth in the sector.
He said President Bola Tinubu has therefore directed the ministry to concession all airports that are not generating profit, allowing private investors to develop them into Aerotropolis hubs with hotels, conference centres, shopping facilities and other revenue-generating structures.
“The government does not have the resources or the structure to build these revenue-generating facilities. We are calling on both local and international investors to come and develop Aerotropolis projects across our airports.
“All the smaller airports are open for concession. We want them developed into a proper Aerotropolis so they can raise revenue for themselves and for the Federal Government,” Keyamo said.
He confirmed that Enugu Airport has already been concessioned, while Port Harcourt Airport is in the final stages of the process, while more proposals are currently under consideration.
Keyamo also announced that Nigeria’s global compliance score under the Cape Town Convention, an international framework governing aircraft leasing, has risen from 49.9% to 75.5%, the highest in Africa. According to him, the improvement follows legal and regulatory adjustments that give foreign lessors confidence to bring aircraft into Nigeria.
This development, he said, has led to fresh aircraft leasing breakthroughs, including Nigeria’s first dry lease in over 15 years, with more global financiers now willing to support local operators.
The minister emphasised that the next phase of reforms will focus on empowering local airlines to compete on major international routes dominated by foreign carriers.
He lamented that while foreign airlines operate freely in Nigeria under existing bilateral air service agreements, most Nigerian airlines lack the aircraft capacity to reciprocate routes to countries such as the United Kingdom, United States, Germany, France, Canada and others.
“We have approved the routes for them. The only limitation is equipment. That is why we are working to help them access more aircraft through leasing reforms.
“Our goal is to open competition on the UK, US, Canada, Paris and other major routes. That is how we will bring down airfares and strengthen our local operators,” Keyamo said.
He noted recent progress with Air Peace, which now flies daily to Gatwick and Heathrow from both Lagos and Abuja, an achievement he said came after extensive negotiations with UK authorities.
Keyamo reaffirmed that supporting local airlines is central to the government’s vision for a modern, competitive aviation sector.
The minister, speaking on safety, noted that Nigeria is working with the International Civil Aviation Organization (ICAO) to develop regulations that will safely integrate unmanned aircraft systems into national airspace without compromising security.
He stressed that ongoing reforms across safety, infrastructure and airline operations are designed to deliver a more reliable and globally competitive sector for the benefit of Nigerian travellers and the wider economy.
