FG Abandons National Carrier Project, Pledges Support for Local Airlines

By James Adamu

The Minister of Aviation and Aerospace Development, Mr Festus Keyamo, has announced that the Federal Government has abandoned plans for a national carrier, instead shifting focus towards bolstering Nigeria’s domestic airline industry.

Speaking at the launch of 100 Years of Civil Aviation in Nigeria: History, Issues and Prospects’ – a book authored by New Telegraph’s Aviation Editor, Mr Wole Shadare – Keyamo also criticised the deteriorating state of the old terminal at Murtala Muhammed International Airport (MMIA), Lagos.

He confirmed that plans are underway to demolish and reconstruct the facility.

The Minister emphasised the Tinubu administration’s commitment to implementing policies that strengthen local carriers. He cited recent measures, including revised insurance regulations for leased aircraft, as evidence of this strategy.

According to Keyamo, such reforms will improve aircraft availability and help reduce domestic airfares.

He said: “We have shifted focus to ensure growth and development for local operators through our policies.”

He added that air traffic operators have been trained and retrained, just as revenue leakages had been addressed to boost earnings.

The minister also disclosed that almost all foreign airlines had complied with his directive to patronise local caterers for in-flight catering.

Also speaking at the event, Managing Director of the Federal Airports Authority of Nigeria, FAAN, Mrs Olubunmi Kuku, said Nigeria currently has 39 certified airline operators, 31 airports nationwide and over 2,100 licensed pilots, which shows that the country’s aviation sector is growing.

According to Kuku, the air transport sector contributed $1.7 billion to the country’s gross domestic product, GDP, with private airlines connecting cities efficiently and international carriers recognising Nigeria as a critical market.

Kuku said despite challenges such as infrastructure deficiencies, regulatory frameworks and financing requirements, there was still substantial potential for growth.

She said: “Upon Nigeria’s attainment of independence in 1960, we were faced with a pivotal question: How could we convert colonial-era infrastructure into a sovereign aviation powerhouse? Our national carrier, Nigeria Airways, emerged as a response, yet it soon faced challenges stemming from mismanagement and operational inefficiencies. By the early 2000s, we found ourselves at a crossroads—adapt or risk obsolescence.

“This juncture precipitated a remarkable transformation. The private sector took the initiative, introducing fresh capital, contemporary management practices, and a competitive spirit. Companies such as Air Peace and Arik Air did not merely fill the void—they revolutionised our aviation landscape. The current figures sum up this transformation: 39 certified airline operators, 31 airports nationwide, over 2,100 licensed pilots, a workforce comprising thousands, ranging from engineers to air traffic controllers.

“Nigeria has emerged as a testament to the efficacy of market-driven solutions. Our aviation sector now contributes approximately $1.7 billion to our GDP. Private airlines are connecting our cities with unprecedented efficiency, and international carriers increasingly regard Nigeria as a critical market. Last year, over 16 million passengers traversed our domestic terminals, while international passenger numbers exceeded 3.5 million. These figures are indeed impressive, yet there remains substantial potential for growth.”

The book’s author, Shadare, on his part, described the 25-chapter book as a comprehensive account of the aviation industry’s evolution in Nigeria over the past 100 years.

According to him, it would aid scholars and researchers in understanding the industry’s history and prospects.