According to Nigerian aviation industry analysts, the proposed N712 billion restoration of the Murtala Muhammed International Airport (MMIA), Terminal One, Lagos, is absurd “at quarter to go.”
Additionally, it was disclosed that Nigeria’s airport project would be among the priciest in the world.
Industry experts have also suggested that instead of spending so much money on airport projects when other infrastructure in the nation is falling behind, the Federal Government could either concession the airport or work with a public-private partnership (PPP).
They also encouraged the government to make the work’s scope clearer and to be more open about its spending.
Last Thursday in Abuja, the Federal Executive Council (FEC) authorized N712 billion for MMIA’s complete renovation, modernization, and upgrade.
The approval served as the focal point of a comprehensive aviation infrastructure plan worth N900 billion for the nation.
In an interview with reporters, Mr. Festus Keyamo, the Minister of Aviation and Aerospace Development, stated that the project, which was given to the China Civil Engineering Construction Corporation (CCECC), would demolish the old terminal to its structural core and then rebuild it with new plumbing, electrical, and mechanical systems.
Additionally, he stated that the project would be carried out over a 22-month period. “We have made the decision to remove everything except the carcass and then perform the full mechanical and electrical (M&E) process once more,” he stated.
He emphasized the administration’s shift from haphazard fixes to a thorough modernization of important aviation infrastructure.
The FEC also gave its approval for Terminal Two’s development, which includes building a new apron, access roads, bridges, and other associated projects.
The entire cost of the airport construction in Lagos, including the Terminal One project, came to N712.26 billion, making it the largest single investment in Nigeria’s aviation industry.
When compared to similar airport development projects in 2024 worldwide, the N712 billion—roughly $474.6 million at a N1,500 exchange rate to one dollar—was incredibly exorbitant, according to GlobalData’s construction project database.
For example, Brown Field International Business Park (BFIBP) and the City of San Diego (COSD) are investing just $1 billion in the Otay Mesa Metropolitan Airpark in the United States (US).
On 134 hectares of land, aviation facilities and auxiliary non-aviation infrastructure will be built as part of the project. In addition to creating 4,000 long-term construction jobs and 8,000 permanent jobs, the project is anticipated to generate $500 million in revenue for the area each year.
Additionally, Romania is investing $1.04 billion to build a new terminal at Henri Coanda International Airport.
At Romania’s busiest airport, the Bucharest Airports National Company (CNAB) is constructing a new modular passenger terminal that will minimize reliance on the current terminal and accommodate up to 20 million passengers annually.
The project entails building a new passenger terminal that is 100,000 square meters in size. Each of the terminal’s four rooms can accommodate up to five million passengers annually. In addition, a 650,000m2 aircraft parking platform, 56 additional aircraft parking spaces, 25 boarding gates, 266,000m2 of new taxiways, 9,600 parking spaces for cars, a 5,000m2 business center, a 200-person hotel, and safety and security systems will be installed.
The Czech Airports Authority (CAA) intends to invest $1.19 billion to expand Terminal 2 at Vaclav Havel Airport (PRG) in Prague, Czech Republic.
A new parallel runway, a three-lane access bridge, retail establishments, waiting areas, check-in and immigration counters, a cafe and restaurant, and Terminal 2 enlargement to accommodate 21.2 million passengers annually are all part of the project.
It also entails expanding the aircraft stands, installing elevators, safety and security systems, creating a public space in front of the terminal building, and constructing a new arrival and departure lounge. Burbank Bob Hope Airport (BBHA), often known as Hollywood Burbank Airport, is investing $1.2 billion to build a 14-gate new terminal at BBHA in California, USA.
On 20 hectares of land, a new airport terminal will be built as part of the project. A two-story, 32,980-square-meter terminal with 14 airplane gates, access roads, and firefighting and aviation rescue stations will be built.
At Taiwan’s Kaohsiung International Airport (KHH), the Taiwanese Civil Aeronautics Administration (CAA) is investing $1.26 billion to create a new terminal building.
The project’s first phase is building a new East Terminal in between the current domestic and international terminals. Phase 2 involves renovating the current international terminal and building a new West Terminal.
At King Abdulaziz International Airport (JED) in Jeddah, Saudi Arabia, the General Authority of Civil Aviation (GACA) is investing $1.26 billion to extend two terminals, the Hajj and Umrah Terminals.
New arrival halls, a runway, access roads, load centers, utility networks, parking facilities, related facilities, and an automated people mover are all part of the project.
The airport will be able to handle 15 million more passengers annually thanks to the two terminal buildings. Other projects include the $1.3 billion extension of Sacramento International Airport in the United States, the $3.3 billion expansion of Brisbane Airport in Australia, the $4.62 billion modernization of Viracopos International Airport in Brazil, and the $4.8 billion Dallas Fort Worth International Airport Terminal in the United States.
In addition, aviation specialists advised the government to use PPPs to construct a more effective and sustainable infrastructure development model, which would propel the nation’s economic expansion.
Centurion Aviation’s Chief Executive Officer (CEO), Grp. Capt. John Ojikutu, stated that the project’s budget was excessive and a waste of limited resources.
Ojikutu noted that none of the renovations were aeronautical and insisted that the government make compromises instead of investing so much money in the project.
He lamented that the nation had failed to complete the periodic maintenance programs of the majority of the aeronautical services, including runways and taxiways, radar, navigational aids, and others, and that the majority of the open items found by the International Civil Aviation Organization (ICAO) in 2004 audits had not yet been closed 21 years later.
Ojikutu added that no non-aeronautical facility could be rehabilitated that could not be concessioned if Bi-Courtney Aviation Services Limited (BASL) was able to build the Murtala Muhammed Airport Two (MMA2), Lagos, from the ground up.
Recalling that a foreign business had bid $30 billion over 30 years for MMIA concessions at N360 billion a year in 2018, he questioned why the Federal Government, led by former Aviation Minister Sen. Hadi Sirika, had not finished the deal. Ojikutu further suggested that the government refrain from funding this kind of infrastructure in the nation, claiming that it is “shared by political officeholders.”
He declared: “It is a folly to spend N712 billion, or $460 million, to renovate a terminal. Whoever is suggesting this waste should provide information if a $500 million Chinese loan might be used for the MMIA Terminal 2 in Abuja, Kano, and Enugu.
“Over the past 20 years, I’ve noticed that Nigerian aviation development has been characterized by needless spending at quarter-to-go.
The concession of the terminal development should allow our agencies’ administrators to start planning for the installation of security barriers in accordance with Annex 17 and airport perimeter walls in accordance with Annex 14 of the ICAO.
Additionally, aviation expert Capt. Mohammed Badamasi concurred with the government that the interior of the terminal building needed to be renovated, but he noted that the expense for this project was enormous.
The majority of the allocated funds, he claimed, will be taken out of the taxpayer’s account.
Similar to Ojikutu, Badamasi advocated for concessions for the terminal and other airports throughout the nation. To serve until a concessionaire is available to take over from the government, he continued, “it is necessary to fix the restrooms, the air conditioning system, the conveyor belts, replace the floor tiles, and renovate the fingers.”
“N712 billion is too much money for only complete rehabilitation. Is $474 million, the equivalent in dollars, likewise too little if N712 billion seems insufficient?
This sum is about equivalent to half a billion dollars. The CEO of Merchant Express Cargo Airlines, Capt. Samuel Caulcrick, advised the government to use the PPP plan instead.
He said that in addition to modernizing the airport’s infrastructure, the PPP will increase its impact. He maintained that by collaborating with the private sector, the government could benefit from their resources, efficiency, and experience, which would improve infrastructure upkeep and administration.
Badamasi emphasized that the private sector had a stake in producing high-quality outcomes and that the infusion of private capital could be turned into performance bonds to guarantee that the upgraded infrastructure was handled efficiently.
However, he stated that although while the specifics of the N712 billion projects were still being finalized, travelers and those planning to travel should have a smooth journey that incorporates a variety of transportation options, such as air-conditioned buses and light trains, inside the airport setting. “Whatever is agreed upon as the private sector’s performance bond injected funds, the government may reallocate the consortium’s deposited resources to other crucial areas of the economy, maximizing the impact of its investments,” he continued.
“The government will receive a guarantee from the performance bonds, which will reduce risks related to infrastructure management.”
The vice president of the Aviation Safety Round Table Initiative (ASRTI), Alex Nwuba, added that any terminal upgrades would enhance the travel experience, but he questioned the price. But Nwuba pressed the administration to release their formula.
After years of patching, the minister discussed a significant demolition of the old terminal because it was a better long-term investment. He should make the scope of the assignment even clearer,” he stated.
N712 billion airport renovation: a glaring example of the government’s wickedness toward the populace – LP
The recent announcement by Festus Keyamo, Minister of Aviation and Aerospace Development, that the Federal Government plans to spend an astounding N712 billion ($475 million) on the renovation of the Murtala Muhammed International Airport in Lagos has been characterized by the Labour Party (LP) as an indication of government malfeasance against the people.
In a statement released on Monday, LP claimed that the “outrageous, insensitive” proposal is extremely concerning, particularly given that the National Bureau of Statistics estimates that 133 million Nigerians, or 63% of the country’s population, are multidimensionally poor.
The party claimed that the APC-led government is putting luxury ahead of the well-being of its constituents, calling this “not just wicked; it is satanic and speaks to a gross disregard for the plight of the masses.”
It also lamented what it saw as the government’s lack of compassion in using the money saved from the elimination of the petroleum subsidy to support the lifestyles of the wealthy rather than raising the standard of living for other Nigerians.
“Withdrawing this lifeline from the poor and directing the proceeds into a luxury terminal accessible exclusively to the rich is a new low in governmental wickedness,” read the statement sent to the party’s interim national chairman, Senator Nenadi Usman, and signed by Senior Special Adviser, Media Ken Asogwa.
“The APC government has given up on any semblance of compassion or responsible leadership. It is puzzling that a project of this kind, which has obvious commercial potential, could not be carried out under a public-private partnership (PPP) approach.
He claims that the minister’s revelation that the so-called Renewed Hope Infrastructure Development Fund, which will be used to fund this project, is composed of savings from the elimination of fuel subsidies—the only significant advantage that the typical Nigerian had from our God-given fossil fuel resources—is even more heinous.
According to the statement, “terminal buildings are investments that generate revenue worldwide.” Instead than wasting subsidy savings on an exclusive project that only serves a small portion of the population, why not encourage private capital, particularly when the return on investment is self-sustaining? How many Nigerians who were denied the benefits of the subsidy era still travel by air today, may we ask? Now if essential necessities like food, healthcare, and transportation are out of their price range, what use do they have for airport terminals? Asogwa stated that the administration’s well-documented budgetary irresponsibility does not surprise the LP.
He continued by criticizing the Lagos-Calabar coastal highway grant, calling the infrastructure “a white elephant project estimated at N15 trillion (about $12 billion), costing taxpayers an outrageous N4 billion per kilometer.”
This administration is obviously characterized by misaligned priorities. Our research in Africa, Asia, and Europe shows multiple examples of modern, cutting-edge airports built from the ground up for significantly less than $475 million.
So how could this government defend squandering so much public money on a simple renovation? “We genuinely wonder what will shock the conscience of Nigerians if this doesn’t,” he remarked.
