The Federal Government’s decision to rebuild Terminal One of the Murtala Muhammed International Airport, Lagos, at a cost of ₦712 billion, will be funded from gains made through the removal of petrol subsidy and foreign exchange reform, according to the Minister of Aviation and Aerospace Development, Festus Keyamo.
Addressing mounting public concerns over the high cost of the project amid widespread economic hardship, Keyamo defended the administration’s decision, describing the airport as “decrepit, leaking, and below international standards.”
“The roof is leaking, the place is decrepit and smelly. You see people selling Indomie, kiosks everywhere. The ceilings are collapsing, and the carousels are no longer functional because parts are obsolete,” he said.
The airport terminal, built over 40 years ago, is due for complete demolition and reconstruction, not mere renovation. Keyamo emphasized that only the structural pillars and decking would remain, while everything else would be rebuilt from scratch over a 22-month timeline.
Not a Budgetary Expense, But an Infrastructure Investment
Keyamo explained that the project would be financed through the Renewed Hope Infrastructure Development Fund, a special fund established from subsidy savings—not from the national budget.
“It’s not a budgetary expenditure. It’s an infrastructure fund sourced from the savings we’re making by removing fuel subsidies and floating the naira,” he clarified.
Strategic Aviation Hub for West Africa
Keyamo warned that continued neglect of the airport infrastructure could lead to international flight operators abandoning Nigeria due to rising insurance premiums and safety concerns.
“Some airlines could stop flying into Nigeria if terminals and runways are not upgraded. Poor facilities impact aircraft insurance, making our airports unattractive and unsafe,” he explained.
He added that Nigeria’s ambition to become a regional aviation hub depends heavily on world-class infrastructure.
“We want to position Lagos as a proper aviation hub to compete with Addis Ababa, Johannesburg, and Cairo. Right now, Lagos cannot even process a passenger transferring between terminals,” he noted.
Public Backlash and Controversy
Despite the government’s justifications, the ₦712bn terminal project has attracted criticism from citizens and civil society groups, who view it as an ill-timed expenditure amid soaring inflation, hunger, and economic distress caused by subsidy removal and currency devaluation.
Critics argue that the funds could be better directed toward urgent social investments like food security, education, and healthcare.
Keyamo’s Reassurance
Still, the Aviation Minister insists the terminal upgrade is both necessary and timely.
“This is about strategic national interest. We can’t afford to be left behind. If we want to attract global business, tourism, and economic growth, we need a first-class airport terminal,” he said.
