…as FG seeks non-public capital for airports
Nigeria’s aviation sector faces tighter fiscal circumstances in 2026 because the Federal Authorities slashed whole budgetary allocation to the Ministry of Aviation and Aerospace Growth to N87.3 billion, representing a 23% decline from the N113.19 billion accredited within the 2025 Appropriation Act.
Particulars of the 2026 Appropriation Invoice obtained by BusinessDay present that capital expenditure nonetheless dominates the Ministry’s spending profile, reflecting the federal government’s push to finish initiatives throughout the sector.
For the core Ministry, whole allocation stands at about N50.05 billion, made up of N1.35 billion for personnel, N745.7 million for overheads and N48.55 billion for capital initiatives. The allocation construction sees a deliberate tilt in the direction of infrastructure spending amid broader fiscal tightening.
Key aviation businesses additionally obtain allocations, with emphasis largely on capital funding slightly than recurrent expenditure. The Nigerian Airspace Administration Company (NAMA) was allotted N6.3 billion solely for capital initiatives, with no provision for personnel or overheads beneath the 2026 proposal.
The Nigerian Meteorological Company (NiMet) acquired a complete allocation of N11.84 billion, comprising N9.15 billion for personnel, N393.7 million for overheads and N2.29 billion for capital expenditure.
Equally, the Nigerian School of Aviation Expertise (NCAT), Zaria, obtained N11.28 billion, damaged down into N4.28 billion for personnel, N464.4 million for overheads and N6.53 billion for capital initiatives.
The Nigerian Security Investigation Bureau (NSIB) was allotted about N7.24 billion, together with N734.1 million for overheads and N6.51 billion for capital expenditure.
The 2026 allocation marks a notable reversal from latest years. In 2024, the aviation ministry acquired N57.23 billion, whereas the 2025 finances noticed a pointy improve to N113.19 billion, pushed largely by a N100.28 billion for capital.
Below the 2026 proposal, capital allocation to the ministry and its businesses has been pared again considerably.
The finances cuts come as the federal government accelerates structural reforms within the aviation sector, notably its plan to finish many years of subsidies for loss-making airports.
In December 2025, Festus Keyamo, Minister of Aviation and Aerospace Growth, mentioned the Federal Authorities would cease financing non-profitable airports that devour billions of naira month-to-month in diesel, upkeep and operational prices whereas producing minimal income.
Based on Keyamo, Lagos airports alone account for about 63% of whole passenger visitors and an identical share of airport revenues nationwide, forcing the Authorities to divert earnings from main hubs resembling Lagos, Abuja and Kano to maintain smaller airports with very low visitors volumes.
He described the mannequin as unsustainable and growth-inhibiting, noting that many regional airports wrestle to keep up primary amenities regardless of heavy authorities spending.
As a part of a brand new aviation reform roadmap, President Bola Tinubu has directed the Ministry to concession non-profitable airports to non-public traders, with the goal of creating them into Aerotropolis hubs that includes resorts, convention centres, buying complexes and different revenue-generating infrastructure.
“The federal government doesn’t have the sources or the construction to construct these revenue-generating amenities,” Keyamo mentioned.
He added that every one smaller airports are open for concession to each native and worldwide traders. The minister additionally confirmed that Enugu Airport has already been concessioned, whereas Port Harcourt Airport is at a sophisticated stage of the method, with extra proposals beneath assessment.
