The Federal Government has announced plans to end financial subsidies for airports that are not generating profit as part of a new aviation reform drive aimed at improving efficiency and increasing revenue.
The Minister of Aviation and Aerospace Development, Festus Keyamo, made this known during a virtual meeting hosted by the National Orientation Agency on the Federal Government’s Roadmap for Sustainable Air Transport.
He said most federal airports operate at a loss and consume billions of naira monthly on diesel, maintenance and other running costs while recording low passenger traffic and weak revenue performance.
According to him, Lagos accounts for about 63 percent of total passenger traffic and a similar share of airport revenues, while many smaller airports record as little as one flight per day and struggle to maintain basic facilities.
Keyamo said the revenue imbalance has forced the government to divert income from major airports such as Lagos, Abuja and Kano to keep smaller airports running, a situation he described as unsustainable.
He said President Bola Tinubu has directed that non profitable airports be concessioned to private investors who will develop them into Aerotropolis hubs with hotels, conference centres and commercial facilities.
He said Enugu Airport has already been concessioned, while Port Harcourt Airport is at an advanced stage, with more airports under consideration.
Keyamo also disclosed that Nigeria’s compliance score under the Cape Town Convention on aircraft leasing has improved from 49.9 percent to 75.5 percent, the highest in Africa, following legal and regulatory reforms.
He said the improvement has helped Nigeria record its first dry aircraft lease in more than 15 years and is attracting new global financiers to support local airlines.
Keyamo said the government is working to help Nigerian airlines access more aircraft through leasing reforms so that they can compete on major international routes.
He noted that foreign airlines currently dominate routes to destinations such as the United Kingdom, United States, France and Canada because most Nigerian airlines lack the aircraft capacity to operate those routes.
He said the government plans to open competition on major international routes to drive down airfares and strengthen local carriers.
He cited Air Peace’s daily flights to Gatwick and Heathrow from Lagos and Abuja as a major step forward.
The minister also said Nigeria is working with the International Civil Aviation Organization to safely integrate unmanned aircraft systems into national airspace.
