FG Reveals Source Of $500 Million Used For Murtala Muhammed International Airport Reconstruction

Minister of Aviation and Aerospace Development, Festus Keyamo, has said the $500m earmarked for the reconstruction of the Murtala Muhammed International Airport (MMIA) old terminal comes from the proceeds of the oil subsidy removal.

Naija News reports that Keyamo disclosed this at the 67th anniversary celebration of Aero Contractors, in Lagos, on Monday.

According to him, with the removal of the subsidy liquidity, the foreign reserves rose, which enabled President Bola Tinubu to raise such amount in less than two years.

He asserted that years of subsidy regimes drained government resources, leaving critical infrastructure across the country in poor condition.

The minister, therefore, stated that the Federal Government’s decision to remove fuel and foreign exchange subsidies has created room for increased investment and infrastructure development in the aviation sector.

The minister said the government has mobilised funds for major aviation projects, including the ongoing reconstruction of Murtala Muhammed International Airport, Lagos, as well as runway rehabilitation projects in Kano, Port Harcourt, and Akure.

He noted that the Lagos airport reconstruction alone has created employment opportunities for thousands of Nigerians involved in construction and related services.

The minister stressed that sustainable economic growth requires investment in infrastructure, adding that job creation comes through projects and private sector expansion.

On policy reforms, Keyamo highlighted measures aimed at strengthening local airlines, including Nigeria’s implementation of the Cape Town Convention and the establishment of the International Registry system, which he said, would improve airlines’ access to aircraft leasing.

He noted that the reforms were already encouraging more states to establish airlines and expand regional operations, citing the growth of new routes by carriers such as Ibom Air and Enugu-based operators.

Keyamo also disclosed plans for improved airport connectivity, including the proposed extension of the Lagos Red Line rail system to link Ikeja, the General Aviation Terminal, and the new international terminal at the Murtala Muhammed Airport.