Policy Shift: Federal Government Rules Out Public Funding For National Carrier

The Federal Government of Nigeria has officially stated that it will no longer use public funds to establish a national carrier. Minister of Aviation and Aerospace Development, Festus Keyamo, confirmed that while the plan for a national airline has not been officially abandoned, the government will not invest “a single dime” of taxpayer money into the venture.

This decision marks a major shift in policy, as the 2026 budget for the Ministry of Aviation contains no financial provisions for a state-owned airline, focusing instead on infrastructure upgrades and airport safety.

During a recent briefing, Keyamo explained that the government is now seeking private investors to take the lead. Under this new strategy, the federal government would only consider proposals where private entities provide the capital and take on the operational risks. The goal is to move away from the controversial models of the past and instead create a business-friendly environment where private airlines can thrive.

The minister emphasized that any future national carrier must be a private-sector initiative that adds clear value to the Nigerian aviation ecosystem without placing a burden on the national treasury.

This move has been generally welcomed by industry experts who have long argued that a privately driven model is more sustainable and less prone to mismanagement. While the government steps back from direct airline ownership, it is intensifying efforts to support existing domestic carriers through better leasing frameworks and improved airport facilities.

For instance, the government is currently pushing for the establishment of indigenous aircraft leasing firms to help local airlines modernize their fleets and compete more effectively on international routes.

As the hunt for private partners begins, the Ministry of Aviation remains focused on its “Renewed Hope” agenda, which prioritizes the completion of ongoing airport projects and the maintenance of safety standards.

By ruling out public funding, the government hopes to attract serious international and local investors who can build a competitive carrier based on market principles rather than political patronage. The future of a national carrier now rests entirely on the willingness of the private sector to step in and fly the Nigerian flag.