FG Identifies Multibillion-Naira Investment Opportunities To Modernise Nigeria’s Aviation Sector

The Federal Government has unveiled a series of multibillion-naira investment opportunities aimed at overhauling Nigeria’s aviation sector, with a focus on airport infrastructure modernisation, the establishment of a world-class Maintenance, Repair, and Overhaul (MRO) hub, aviation leasing companies, and the development of cargo and logistics centres across major airports.

Speaking at the opening ceremony of the 2025 FAAN National Aviation Conference (FNAC) in Lagos, Minister of Aviation and Aerospace Development Festus Keyamo said the initiatives are central to the administration’s plan to reposition the aviation industry for global competitiveness.

Represented by the Permanent Secretary of the Aviation Ministry, Ibrahim Kana, Keyamo noted that the government is leveraging the Renewed Hope funding framework to deliver extensive upgrades across Nigeria’s airport network.

He stated that ongoing projects include terminal modernisation, runway rehabilitation, apron expansion and the construction of new cargo complexes, adding that several of these interventions are suitable for transparent execution under Public-Private Partnership (PPP) models that guarantee viability and investor returns.

Keyamo described Africa’s annual multibillion-dollar losses to offshore aircraft maintenance as a major opportunity that Nigeria intends to harness by establishing a regional MRO hub to serve West and Central Africa. According to him, such a facility will reduce operating costs for airlines, retain capital within the region, and create high-skilled jobs for Nigerians.

He further highlighted that Nigeria’s improved legal framework for aviation financing has created fertile ground for the emergence of indigenous aircraft leasing companies. These firms, he noted, are critical to supporting fleet modernisation among local airlines and strengthening the domestic aviation finance ecosystem.

On cargo and logistics development, the minister said Nigeria’s agricultural and manufacturing output underscores the need for efficient export gateways. Plans are underway to establish dedicated cargo and logistics hubs in key Federal Airports Authority of Nigeria (FAAN) airports to unlock agro-export potential, reduce spoilage and position Nigerian producers within global value chains.

“These are not just broad concepts,” Keyamo stated. “FAAN will present data-driven business cases, timelines and structured investment frameworks that will give investors the visibility and confidence they require.”

FAAN Managing Director/Chief Executive, Olubunmi Kuku, who also addressed participants, said the government is currently funding the transformation of six airports and several runways nationwide.

She noted that the gap between existing airport capacity and projected passenger traffic presents significant opportunities for investors in terminal modernisation, airport city development and cargo infrastructure.

Kuku emphasised FAAN’s interest in partnering with global experts in airport management, ground handling and logistics to enhance efficiency and share in the profitability of a rapidly expanding market. She added that investment in smart technologies, biometrics and sustainable solutions is essential as Africa emerges as the next frontier of global aviation growth.

Citing International Air Transport Association (IATA) data, she said global passenger traffic is projected to hit a record 4.99 billion in 2025, surpassing pre-pandemic levels, while Airports Council International (ACI) forecasts passenger volumes to reach 9.7 billion by 2040, with Africa positioned at the centre of this expansion.

Kuku called on aviation unions to embrace collaboration and support investment-driven reforms, stressing that private sector participation will create better facilities, more advanced systems and additional employment opportunities for Nigerians.

Representing President Bola Ahmed Tinubu, Secretary to the Government of the Federation (SGF), George Akume, reaffirmed the Federal Government’s commitment to an aviation sector anchored on safety, efficiency, private investment and global best practices.

He referenced the commissioning of international terminals in Lagos and Port Harcourt, extensive rehabilitation works in Abuja, Enugu and Kano, and strengthened regulatory oversight by NCAA in partnership with ICAO, IATA and NCAT.

Akume also noted ongoing expansions of cargo, hangar and MRO facilities in Lagos and Kano, which are expected to position Nigeria as a logistics and aircraft-maintenance hub for West Africa. The government, he added, is advancing frameworks for a national carrier built on transparency and sustainability.

He stressed that while the government remains committed to creating an enabling environment for aviation business growth, it cannot singularly finance all sector needs, reinforcing the importance of private capital in achieving Nigeria’s aviation transformation goals.