The Minister of Aviation and Aerospace Development, Festus Keyamo, has revealed that the Federal Government invested approximately $500 million in cash to modernise the Murtala Muhammed International Airport (MMIA) in Lagos, emphasising that the funds were not borrowed.
Keyamo made the disclosure on Wednesday during the Aircraft Acquisition and Investment Summit in Lagos, where he detailed the scale of the government’s commitment to overhauling the nation’s premier international gateway.
“The scale of Nigeria’s aviation opportunity is perhaps best illustrated by what is now happening in Lagos, with roughly half a billion dollars invested by the Nigerian government in the modernisation of Lagos International Airport infrastructure,” Keyamo stated.
He stressed that the funding model for the project marked a significant departure from past infrastructure initiatives, which often relied on external borrowing.
“We did not borrow the money; Mr President made the funds available in cash, and contractors have already moved to the site,” the minister said.
The modernisation project, approved by the Federal Executive Council, is valued at ₦712 billion and is designed to transform the ageing airport into a world-class aviation hub. Unlike previous repair works, this initiative entails a comprehensive overhaul of the airport’s facilities, including the complete reconstruction of sections recently damaged by fire.
The minister also provided a definitive timeline for the project, urging stakeholders and the travelling public to expect visible progress in the coming months.
“You will be very proud of what you see at Lagos airport in the next 22 months because that is the time allocated for delivery,” Keyamo said. “Mr President [Bola Tinubu] understands the importance of aviation and its gateways. You can imagine how we are clearing the backlog and reforming our major airports.”
The urgency of the project was underscored by a fire incident in late February 2026 at Terminal 1 of the old international wing. The blaze, which originated from the IT server room, destroyed critical Nigerian Airspace Management Agency (NAMA) communication equipment, temporarily shutting down the airfield and diverting flights to Abuja. Following the incident, Keyamo ordered the terminal’s demolition, accelerating the timeline for the current reconstruction efforts.
Keyamo used the summit to announce additional infrastructure developments beyond Lagos, revealing that President Tinubu has also approved the immediate resumption of work on a second runway for the Nnamdi Azikiwe International Airport in Abuja.
“After Lagos, we are moving elsewhere. The President has also approved the commencement of the second runway in Abuja; you are hearing it here for the first time,” Keyamo said. “Work had been halted due to volatility in the Niger, but construction will resume immediately, and the second runway in Abuja will be ready in no time.”
The Lagos modernisation project is part of a broader strategy by the Federal Government to position Nigeria as a major aviation hub in Africa. The MMIA currently operates with a mix of government-run and privately-owned terminals, with a new international terminal recently commissioned to increase capacity. Future expansion plans also include the proposed Lekki International Airport to serve the growing industrial corridor in the Lekki-Epe axis.
Keyamo concluded by reiterating that the substantial cash investment in Lagos reflects the government’s recognition of the city’s critical role as the gateway to one of Africa’s largest aviation markets.
“Nigeria is making a clear statement that the gateway serving one of Africa’s most important aviation markets must match the scale of its responsibility,” he said.
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