The removal of petrol subsidy helped the Federal Government raise about $500m for critical aviation infrastructure, including the reconstruction of the Lagos airport, Aviation Minister Festus Keyamo has said.
Keyamo said the funds were raised within two years without borrowing, attributing the development to improved liquidity and stronger foreign reserves following economic reforms under President Bola Tinubu.
The minister spoke on Monday at the 67th anniversary of Aero Contractors in Lagos while responding to concerns over the aviation sector under the administration’s Renewed Hope Agenda.
“The President raised $500m to rebuild the Lagos airport. Not money borrowed, because we were able to do what we should do,” Keyamo said.
He said Nigeria’s foreign reserves had risen from about $3bn to $56bn, adding that the improvement had helped restore investor confidence in the country.
Keyamo argued that stronger macroeconomic conditions were necessary to attract the capital required for infrastructure development and job creation.
He said, “It is when foreign investors see that you are healthy, your economy is healthy, and your foreign reserves are healthy that they will come into the country. They will build infrastructure, they will bring in money, and they will bring jobs.”
The minister’s comments come amid continued criticism of the petrol subsidy removal over its impact on food, transport and other living costs.
Defending the policy, Keyamo said sustainable employment depended on investment and infrastructure rather than government pronouncements.
“Jobs don’t fall from heaven; jobs come as a result of either the infrastructure you are building or investments. That is how jobs are created,” he said.
Keyamo also disclosed that Tinubu had approved the return of China Civil Engineering Construction Corporation to the Abuja airport project to construct the long-delayed second runway at the Nnamdi Azikiwe International Airport.
He said the project had suffered prolonged delays after concerns were raised about its cost, recalling that the National Assembly had previously objected to an estimated N45bn expenditure on the runway.
According to Keyamo, the cost has now risen to nearly N500bn.
“Fifteen years later, or maybe 20 years later, it is now costing us nearly ₦500bn,” he said.
The minister said the Lagos airport reconstruction and Abuja runway project formed part of the administration’s broader plan to upgrade aviation infrastructure and position the sector to contribute more to economic growth.
Earlier, the Managing Director of Aero Contractors called for greater emphasis on aviation in Nigeria’s economic development strategy, saying the sector remained critical to trade, tourism, employment and investment.
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