The Minister of Aviation and Aerospace Development, Festus Keyamo, says the removal of fuel subsidy has enabled the Federal Government to raise about $500 million for the reconstruction of the Lagos airport and other critical aviation infrastructure.
Keyamo disclosed this on Monday at the 67th anniversary of Aero Contractors Airline in Lagos.
The minister, who was responding to a question on the state of the aviation industry under the Renewed Hope Agenda, said the funds were not obtained through borrowing but were made possible by improvements in Nigeria’s liquidity and foreign reserves.
According to him, Nigeria’s foreign reserves have risen from about $3 billion to $56 billion, making the country more attractive to investors.
“The President raised $500m to rebuild the Lagos airport. Not money borrowed, because we were able to do what we should do. Our liquidity rose. Our foreign reserves also rose from $3bn to $56bn now.
“And investors are rushing into the country because they now see the country as viable,” he said.
Keyamo’s remarks come amid continuing debate over the economic impact of fuel subsidy removal, particularly rising food, transportation and other living costs.
Addressing concerns about the effect of stronger foreign reserves on Nigerians facing economic hardship, the minister argued that macroeconomic stability was necessary to attract foreign investment, develop infrastructure and create jobs.
He said investors would be more willing to commit capital to Nigeria when they were confident in the health of the economy and the country’s foreign reserves.
“Tell me, what exactly will bring investors? What will bring jobs?” he asked.
“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 also defended the government’s focus on infrastructure and investment as a means of generating employment, saying jobs were created through investment and infrastructure development 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 said the Lagos airport reconstruction was part of the administration’s broader plan to upgrade aviation infrastructure across the country.
He disclosed that President Bola Tinubu had also approved the return of the China Civil Engineering Construction Corporation to the Nnamdi Azikiwe International Airport project in Abuja to construct the long-delayed second runway.
“The President is not only stopping at rebuilding Lagos International Airport. Mr. President has also approved that CCECC go back to build the second runway in Abuja now,” he said.
Keyamo recalled that the Abuja airport second runway project had previously faced opposition over its estimated cost, which was put at about N45 billion at the time.
He said the National Assembly had raised concerns about the proposed expenditure, resulting in the project being stalled.
“The National Assembly fought that project because they said that N45 billion was too much to spend on the second runway,” he said.
According to Keyamo, the prolonged delay has significantly increased the cost of the project, which he said could now approach N500 billion.
He maintained that the government’s investment in aviation infrastructure was aimed at creating an environment capable of attracting capital, supporting economic activity and generating employment.
