The Minister of Aviation and Aerospace Development, Festus Keyamo, has said the removal of fuel subsidy helped the Federal Government improve liquidity and raise about $500 million for the reconstruction of the Lagos airport and other critical aviation infrastructure within two years.
Mr Keyamo made the disclosure on Monday at the 67th anniversary of Aero Contractors in Lagos while highlighting the Federal Government’s investment in the aviation sector.
He said the $500 million was not borrowed, arguing that improved liquidity and foreign reserves following the government’s economic reforms created greater capacity to fund infrastructure.
“The President raised $500m to rebuild the Lagos airport. Not money borrowed, because we were able to do what we should do.”
Mr Keyamo also said Nigeria’s foreign reserves had risen from about $3 billion to $56 billion, which he said had increased investor confidence in the country.
Why the subsidy removal matters
The minister linked the government’s ability to attract investment to improvements in the country’s macroeconomic position.
Defending the policy against criticism over its impact on Nigerians, Mr Keyamo argued that stronger foreign reserves and a healthier economy would help attract investors who could provide capital, infrastructure and employment.
“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.”
The government has previously said the removal of petrol subsidy freed ₦15.8 trillion for the Federation between June 2023 and December 2025, although Nigerians have also faced higher fuel, transport, food and other living costs following the reform.
Lagos airport reconstruction
Mr Keyamo said the reconstruction of the Lagos airport is part of the administration’s wider plan to modernise aviation infrastructure and make the sector a stronger driver of economic activity.
He said the project had also created employment, with Nigerians engaged in construction and related work at the airport.
The minister stressed that the government’s aviation investment was not limited to Lagos.
Abuja airport second runway
Mr Keyamo disclosed that President Bola Tinubu had approved the return of China Civil Engineering Construction Corporation (CCECC) to the Abuja airport project to construct the long-delayed second runway at the Nnamdi Azikiwe International Airport.
He recalled that the project had previously faced resistance over its estimated ₦45 billion cost.
According to him, delays have now pushed the estimated cost of the project to nearly ₦500 billion.
“We could not raise N45bn at that time to build the second runway. Fifteen years later, or maybe 20 years later, it is now costing us nearly ₦500bn.”
The Federal Government says the economic reforms are creating fiscal space for major infrastructure projects, while critics continue to question whether the benefits are reaching ordinary Nigerians quickly enough.
For air travellers, the planned airport investments could mean improved terminals, runways and other aviation infrastructure. For the wider economy, the government is betting that better infrastructure and increased investment will support businesses, tourism and job creation.
The debate, however, remains tied to the broader question of whether the economic gains from subsidy removal can translate into tangible improvements in the living conditions of Nigerians.
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