Nigeria’s aviation sector is set for a significant shift in fiscal strategy for 2026, with a notable reduction in the total budgetary allocation to the Ministry of Aviation and Aerospace Development. This move signals a stronger reliance on private capital to drive infrastructure development and operational efficiency within the nation’s airports. The government’s decision to slash the 2026 aviation budget underscores a strategic pivot towards attracting private investment to bolster the sector.
The proposed budget for 2026 stands at N87.3 billion, a substantial decrease of 23 percent from the N113.19 billion allocated in the 2025 Appropriation Act. This tightening of fiscal conditions necessitates innovative funding models, with a clear emphasis on leveraging private sector expertise and resources.
Featured snippet paragraph: The Nigerian federal government is seeking private capital for airports as part of a new aviation reform roadmap, aiming to concession non-profitable airports to private investors to develop them into revenue-generating aerotropolis hubs.
Details emerging from the 2026 Appropriation Bill reveal that capital expenditure remains a dominant feature of the ministry’s spending profile. This persistent focus on infrastructure projects reflects the government’s ongoing commitment to completing vital developments across the aviation landscape, even amidst reduced overall funding.
For the core ministry itself, the total allocation is approximately N50.05 billion. This includes N1.35 billion designated for personnel, N745.7 million for overheads, and a substantial N48.55 billion earmarked for capital projects, highlighting the priority placed on tangible asset enhancement.
The allocation structure demonstrates a deliberate inclination towards infrastructure spending. This is occurring concurrently with broader fiscal consolidation measures being implemented by the government.
Key aviation agencies are also slated to receive allocations, with a pronounced emphasis on capital funding rather than recurrent expenditure. This strategic allocation aims to ensure that essential infrastructure receives the necessary investment for upgrades and expansion.
The Nigerian Airspace Management Agency (NAMA) has been allocated N6.3 billion, exclusively for capital projects. Notably, there is no provision for personnel or overheads within the 2026 proposal for NAMA, suggesting a focus on technological and infrastructure advancements.
The Nigerian Meteorological Agency (NiMet) is set to receive a total allocation of N11.84 billion. This comprises N9.15 billion for personnel, N393.7 million for overheads, and N2.29 billion designated for capital expenditure, indicating a balanced approach to operational and developmental needs.
Similarly, the Nigerian College of Aviation Technology (NCAT), Zaria, has been allocated N11.28 billion. This amount is broken down into N4.28 billion for personnel, N464.4 million for overheads, and N6.53 billion for capital projects, supporting its role in training and development.
The Nigerian Safety Investigation Bureau (NSIB) is allocated approximately N7.24 billion, which includes N734.1 million for overheads and N6.51 billion for capital expenditure, underscoring the importance of safety and investigation infrastructure.
This 2026 allocation marks a significant departure from recent budget trends. In 2024, the aviation ministry received N57.23 billion, followed by a substantial increase to N113.19 billion in the 2025 budget, largely driven by N100.28 billion for capital expenditure.
The current proposal for 2026 sees a considerable reduction in capital allocation to both the ministry and its agencies, reflecting the new strategic direction.
These budget cuts coincide with the government’s intensified efforts to enact structural reforms within the aviation sector. A key reform involves phasing out decades-old subsidies for airports that consistently operate at a loss.
In December 2025, Festus Keyamo, the Minister of Aviation and Aerospace Development, announced that the federal government would cease financial support for non-profitable airports. These airports have been incurring significant monthly expenses for diesel, maintenance, and operations, while generating minimal revenue.
Keyamo highlighted that airports in Lagos alone are responsible for approximately 63 percent of the nation’s total passenger traffic and a similar proportion of airport revenues. This situation forces the government to redirect earnings from major hubs like Lagos, Abuja, and Kano to subsidize smaller airports with very low passenger volumes.
He characterized this financial model as unsustainable and detrimental to the sector’s growth. Many regional airports struggle to maintain even basic facilities despite substantial government investment.
As part of a new aviation reform roadmap, President Bola Tinubu has mandated the ministry to concession non-profitable airports to private investors. The objective is to transform these airports into aerotropolis hubs, incorporating hotels, conference centers, shopping complexes, and other revenue-generating infrastructure.
Keyamo emphasized that the government lacks the necessary resources and organizational structure to develop these revenue-generating facilities independently. He stated that all smaller airports are now open for concession to both domestic and international investors.
The minister also confirmed that Enugu Airport has already been successfully concessioned. Port Harcourt Airport is in the advanced stages of a similar process, with numerous other proposals currently under review.
