The Federal Government has announced that the ₦712 billion approved for the complete reconstruction of Terminal One of the Murtala Muhammed International Airport, Lagos, will be financed through savings from the removal of fuel subsidies and the floating of the naira.
Minister of Aviation and Aerospace Development, Festus Keyamo, made this known on Sunday during an appearance on a Channels Television programme.
According to the minister, the airport terminal is in a state of severe disrepair, with leaking roofs, malfunctioning baggage systems, and an overall poor environment that poses a reputational risk to Nigeria’s aviation sector.
“You see people selling Indomie, kiosks everywhere, the ceilings are failing, and the carousels are not working because their parts are no longer available in the market,” Keyamo said.
He emphasized that the reconstruction would not be funded through the traditional national budget, but through the “Renewed Hope Infrastructural Funding,” a special fund created from savings generated by recent economic reforms.
Public Backlash Over Spending
The decision to allocate ₦712 billion to a single terminal project has attracted significant public criticism.
Many argue that the expenditure is ill-timed, given the country’s ongoing economic challenges including high inflation, worsening food insecurity, and increased cost of living — all of which have been partially attributed to the same reforms funding the project.
However, Keyamo defended the investment, arguing that deteriorating airport infrastructure is already impacting Nigeria’s aviation reputation and threatening foreign airline operations in the country.
“Some international airlines may consider withdrawing from Nigeria if conditions remain poor. A bad runway, failing terminal facilities — these affect aviation insurance and operational safety,” he explained.
Keyamo clarified that the project is not a refurbishment but a complete reconstruction. The current structure, built over four decades ago, will be largely demolished, sparing only the pillars and the main frame.
“We are tearing it down completely — only the carcass remains. A new design will be implemented to meet modern standards,” he said.
The minister said the revamped terminal would be capable of positioning Lagos as a true West African aviation hub, competing with established airports in countries like Ethiopia and South Africa.
The reconstruction is expected to span 22 months, with the goal of resolving longstanding issues that have hindered passenger flow, connectivity, and international standards compliance.
Currently, Lagos airport does not support efficient local-to-international flight transfers — a major barrier to hub development, according to Keyamo.
“Lagos was originally intended to be a hub since the 1970s, but that vision stalled. This project is about restoring that original plan and turning Lagos into a modern, functional hub,” he said.
