FUEL SUBSIDY REMOVAL LINKED TO $500M AVIATION INFRASTRUCTURE FUNDING

The Minister of Aviation and Aerospace Development, Festus Keyamo, has said the removal of the petrol subsidy helped create the financial conditions that enabled the Federal Government to raise about $500m for aviation infrastructure.

Keyamo disclosed this in Lagos during the 67th anniversary of Aero Contractors, where he discussed investments in the aviation sector.

He said the funds were used for the reconstruction of the Lagos airport and other infrastructure projects and were not raised through borrowing.

According to the minister, improved liquidity and higher foreign exchange reserves have strengthened investor confidence and created room for infrastructure spending.

Keyamo said Nigeria’s foreign reserves had risen from about $3bn to $56bn, adding that the government’s focus was to attract investment that would support infrastructure development and create employment.

He also disclosed that President Bola Tinubu had approved the return of China Civil Engineering Construction Corporation to the Abuja airport project for the construction of a second runway at Nnamdi Azikiwe International Airport.

The minister said the Abuja runway project had faced delays over funding and cost concerns, with its estimated cost now approaching N500bn.

Keyamo maintained that infrastructure investment and private-sector participation were important to the long-term development of the aviation industry.

The minister’s comments came amid continuing debate over the economic impact of petrol subsidy removal and its effect on households and businesses.